Star Africa Corporation Limited‘s Goldstar Sugars Harare (GSSH) has recorded a 5.6% drop in sales volumes largely attributed to interruptions to production due to Covid-19 related factors and plant downtime in the Abridged Audited Financial Results For The Year Ended 31 March 2021.
Star Africa Corporation Limited Chairman Joseph Mutizwa says the business unit sold 60,386 tonnes against 63,993 tonnes sold last year.
“GSSH’s production was adversely affected by an increased plant breakdown profile, a 3-week total shutdown in operations caused by a Covid-19 incident at the Harare Refinery between July and August 2020 and a fire that razed down the raw sugar warehouse which resulted in a decrease in production of 9% from 65,568 to 59,571 tonnes of refined sugar produced in the current year,” said Mutizwa.
“Demand for our products remained strong with volumes constrained only by production challenges. A comprehensive capital investment strategy and equipment maintenance plan are now in place and will be implemented at an accelerated pace now that the business has returned to viability.”
Star Africa also incurred losses during the financial year that ended 31 March 2021.
Mutizwa said, ” A downward adjustment in the fair value on investment properties caused by loss in value of properties in the market in real terms impacted negatively on profitability.”
“The Group also incurred a monetary loss of ZWL163 million caused by depreciation of the value of the monetary assets it holds, which resulted in Profit After Tax of ZWL 109.7 million, compared with ZWL185.9 million achieved last year.”
Production at Star Africa also decreased from 65 568 tonnes recorded in 2020 to tonnes 59,880 tonnes in the company’s financial year that ended 31 March 2021.
On the positive note Star Africa however managed to clear 99.8% of the liabilities by the end of the year under review.
Mutizwa said, “The Secondary Scheme of Arrangement, whose tenure expires in February 2022, remains in place with 99.8% of creditors having been settled leaving an amount of only ZWL1.3 million in liabilities under the Scheme as at the end of year under review with ZWL654,451 of this balance having been settled immediately after year end.”
“The Group continues with efforts to trace the whereabouts of the few remaining local Scheme creditors with a view to clearing the small amounts still outstanding within the time frame of the Scheme.”
The Group chairman went on to say that all outstanding foreign liabilities have now been settled.
The sugar distributer also witnessed revenue increasing by 542% to ZWL3.8 billion from ZWL597 million recorded in the prior year, while profit for the year increased by 651% to ZWL497 million from a prior year achievement of ZWL66.2 million.
The Group’s net working capital position strengthened significantly by 78% to ZWL306.2 million up from ZWL172.2 million achieved last year according to Mutizwa.
