PADENGA Holdings Limited has recorded an increase in after-tax profit from $3,4 million in 2012 to $4,1 million for the 18 months ended December 31 2013 due to growth in revenue.
By Tarisai Mandizha Business Reporter
In a statement accompanying the group’s audited results, Padenga Holdings chairperson Ken Calder said: “There was no (crocodile) culling or turnover in this additional six months period and the additional operating overheads costs incurred in those six months amounted to $4,4 million.
“Had we not included the extra six months of expenses growth in profits we would more closely reflect the growth in turnover in the local operations,” Calder said.
The company’s revenue increased to $27 million for the period under review from $17, 9 million for the 12 months ended June 30 2012, while cash generated by the group from operating activities doubled to $8,3 million from $4,2 million in 2012.
“The increase in cash generation was achieved despite an increase in consumable stocks of $1,9 million and an increase in livestock costs of $3 million.
He said the company had spent $3,6 million on the acquisition of fixed assets, primarily facilities to increase production in the crocodile operations.
In the period under review, the groups’ crocodile operations in United States recorded a turnover of $3,8 million from the sale of 13 825 crocodiles over two culling years.
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“In November 2012 the operation sold 7 882 crocodile skins and in November 2013 a further total of 5 943 crocodiles were harvested. This followed a change in strategy to grow part of this crop out into medium-sized skins at an improved profit margin, which will occur in 2014,” he said.
Nile crocodile operations turnover increased by 29% to $23,1 million in the period under review from $17,9 million recorded in the 12 months to June 2012. An operating profit of $4,2 million and a profit before tax of $3,5 million were recorded compared to an operating profit of $5,4 million.
Calder said at Lone Star Alligators, 19 600 new hatchlings were inducted into the pens and were expected to yield 19 000 animals.
He said in 2013 production increased to 9 600 animals of which 5 943 were harvested in October 2013 and the remainder were deliberately carried forward into 2014 for harvesting as medium-skin which offers an increased margin of profitability.
He added that in November 2012 the farm produced and sold 7 882 skins and at Lone Star Alligator Farm operational focus was on expanding the production facilities to achieve an annual production capacity of 20 000 skins per annum.
At Nile, crocodile operations closed the period with a total of 164 179 crocodiles on the ground as compared to 116 723 at the end of the prior period.
