ZIMBABWE Stock Exchange-listed agro-concern Ariston Holdings Ltd posted a loss of $531 648 for the full-year ended September 30 2012 weighed down by control deficiencies at its trading division. BUSINESS Reporter
The loss was lower than the $2 million that the company recorded in the prior year.
In a statement accompanying results, company secretary Faith Musinga said turnover went up by 69% to $14,8 million while operating loss stood at $2,8 million.
Favco’s contribution to the group’s turnover was 58% due to increased activities.
“During the year under review, although performance has improved, the group did not achieve the anticipated levels of activity in all areas. This was largely due to the capital raise being finalised later than anticipated,” Musinga said. “Sadly significant weaknesses in internal systems allowed margins to be eroded during the period. Corrective action has been implemented in both internal systems and product focus.”
Ariston said the group was now adequately funded such that operations would not be constrained.
“The capital projects already in place will start to yield returns in the year ahead with improvements in quality, output and cost reduction on all farms. Throughput is set to increase significantly in 2013 across all operations. The improvements in operational capacity over the last six months combined with those improvements still to come will set the stage for Ariston’s return to profitability,” she said.
The group’s turnover went up by 69% to $14,8 million while operating loss stood at $2,8 million.
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Musinga said the group was eyeing a return to profitability during the current financial year after having secured adequate capital.
“Ariston looks set to return to profitability in 2013 with significant increases in production across all operations,” she added.
The company said it had commissioned its decaffeination factory after a four-year break.
It said irrigation rehabilitation on all farms had given operations improved control with positive results in tea gardens as well as macademia and apple orchards.
