BY MISHMA CHAKANYUKA
LISTED agricultural concern Ariston Holdings says it has started the season on a high note and anticipates a marked improvement in production of stone fruit, apples and macadamia this year, compared to 2018.
The company operates six farming estates, which include Clearwater Estate, Roscommon Estate, Claremont Estate, Blended Tea Factory, Southdown Estates and Kent Estate.
Chief executive Paul Spears told shareholders at an annual general meeting that revenue would continue to be more export-oriented, with an increase on export earnings expected year-on-year.
In 2018, the company reported an income of $14,3 million, which was a 30% increase from the prior year’s $10,9 million.
Spears said as the season commenced, macadamia volumes were well ahead when compared to the prior year, which ended with an output of 1 350 tonnes.
He said macadamia sales were expected to increase marginally from 1 300 tonnes to 1 400 tonnes, with product quality expected to improve due to expanded drying capacity.
“Tea experienced some disturbances as the season commenced, with the weather hotter than normal, leading to a 10% decline in tea yields,” Spears said.
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Tea sales are projected at 3 600 tonnes compared to 3 200 tonnes in 2018, while stone fruit is forecast to jump to 1 200 tonnes from 800 tonnes.
Poultry sales are expected to increase to 1 800 tonnes, down from 1 200 tonnes.
Spears said the return to profitability had enabled the company to repay its debt. By year end, debt should be reduced to 40% of the current position.
In 2018, finance costs amounted to $1 million from $1, 8 million.
The company has set aside massive investment in capital expenditure, as the group plans to retool and expand the current production base.
Spears said operations were being impacted by disturbances in power supply.
“Zesa is proving to be a problem for us. There is all manner of complications. More and more, if there is a transformer fault, you buy it by yourself. It is becoming a big and big problem for us,” he said.
