- Ariston reported a 3% increase in macadamia production, reaching 1,395 tonnes for the year ended 30 September 2024, up from 1,354 tonnes
- Average selling price of macadamia nuts improved by 13%, driven by heightened demand and tighter market conditions
- Net loss narrowed to US$4 million from US$6 million in 2023, benefiting from increased macadamia and tea sales
Harare-Ariston Holdings Limited, a diversified agricultural company listed on the Zimbabwe stock exchange (ZSE), has reported a 3% increase in macadamia production to 1, 395 tonnes for the year ended 30 September 2024 up from 1,354 tonnes in the prior comparative period.
As a result of this growth, benefiting from increases in both macadamia sales and tea sales, the net loss was narrowed to US$4 million US$6 million in 2023.
The average selling price of macadamia nuts improved by 13% driven by heightened demand and tighter market conditions.
This demand growth was fuelled by consumer preference for healthy snacks, the health benefits of macadamia nuts, and their versatility in various industries.
Growth in output largely benefitted from the commissioning of a macadamia scanning machine in April 2024 which enabled better quality assessment, enhancing export pricing.
‘’The equipment was commissioned in April 2024 in time for the current year macadamia selling season and its benefits were evident,’’ company chairperson Alexander Jongwe said in a statement accompanying the full year financials.
This, combined with a 26% increase in tea production volumes to 3,070 tonnes, helped the company boost group revenue by 9% to US$7,06 million.
Local tea sales volumes surged 39%, supporting margins and limiting the overall tea revenue decline to 0.3%.
However, tea export volumes declined by 60% due to a 21% drop in average export prices.
Cost of sales increased by 3% driven up by higher prices for fertilisers, crop chemicals, and rapid electricity blackouts.
The company mitigated some of these costs through its Southdown Estate solar plant which offset some of the electricity costs.
Other products, including maize, soya beans, avocados, and bananas, contributed 21% to revenue.
To preserve dam water during the dry spell, the company opted not to grow water-intensive crops like potatoes.
Looking ahead, the company anticipates a promising 2024/2025 season, with macadamia production set to benefit from global undersupply and higher export prices, while tea focuses on quality amid normal to above-normal rainfall forecasts.
The Group could deepen high-performing joint ventures like Bonemarrow Investments and Claremont Orchards Holdings or divest non-core assets to fund investments in irrigation or niche crops with strong export demand, tailored to Zimbabwe’s agro-ecological zones.
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