PADENGA Holdings Limited posted $195,58 million net profit in the six months ended June 30, 2019, driven by fair value gains from biological assets in line with the change in functional currency.
The increase was from a 2018 figure of $5,73 million.
BY MISHMA CHAKANYUKA
The Reserve Bank of Zimbabwe (RBZ) declared the Zimdollar as the sole legal tender on June 24, 2019, scrapping the use of a basket of other foreign currencies.
This resulted in companies changing their functional currency from the US dollar to the local currency, hence getting gains from the revaluation.
“The seasonal increase in profit resulted from fair valuation of biological assets in line with the change in the functional currency,” the group’s chairman, Thembinkosi Sibanda said in a statement accompanying the company’s financial results.
Revenue for the period was $25,1 million, an improvement from $9,6 million recorded in the prior year.
Sibanda said the number of skins sold declined to 17 722 compared to 19 863 skins sold in the same period last year.
The group started its alligator harvest in the United States early to reduce the carryover crop as well as to mitigate against rising cost of sales.
“We harvested 1 186 watchband-sized skin alligators, 9 444 medium-sized skin alligators and 1 116 large-sized skin alligators in the period under review. In the same period last year, we harvested 7 095 alligators. The remaining 5 926 skins sold were Nile crocodile skins,” Sibanda said.
Padenga Holdings’ commissioned its first phase of the solar energy array constructed on Nyanyana Farm during the first half year and the second phase is expected to be completed by end of this month.
“The second phase (470 kilowatts) is wired and awaiting the Zimbabwe Energy Regulatory Authority inspection and thereafter commissioning by the Zimbabwe Electricity Distribution Company, which is planned to be finalised by end of September, 2019. These installations form part of an initiative to eventually offset 50% of the farm’s current electricity cost, as well as providing a strategic alternative against prolonged and excessive loadshedding,” Sibanda said.
Going forward, the company expects to meet its target harvest volumes and will pursue initiatives targeted at improving skins productiond.
“With the research laboratory facility now complete on the Zimbabwe operation, management will pursue advanced scientific initiatives relevant to further improving skins produced and fully understanding the origin and control methodology for defects responsible for reducing skin quality.”