ARISTON Holdings Limited has narrowed its loss-making position to US$1,43 million for the half year ended March 31, 2025, from US$2,1 million in the comparable period last year, attributed to a drop in the cost of production.
The cost of production dropped to US$2,43 million in the period under review, from US$3,2 million.
In a statement attached to its half-year financial results for the period ended March 31, 2025, Ariston chairperson Alexander Jongwe said the loss narrowed despite a decline in revenue.
“Revenue of US$1 991 087 generated during the first half of the year was 18% below the prior comparative period. This was mainly attributable to a decline in local tea sales volumes. The decline in revenue posted, countered by a 24% improvement in the cost of production, resulted in the group posting a gross loss during the period of US$441 078,” he said.
“In the comparative period, the group had significant unrealised exchange losses, mainly arising from United States dollar-denominated liabilities. Since the change in functional currency, exchange gains have been generated arising from Zimbabwe dollar-denominated liabilities, which improved by 78% from the prior comparative period.”
He said the finance costs declined by 25%, compared to the prior comparative period.
“As a result of all the above, the group posted a 32% decline in the loss incurred during the first half of the year,” Jongwe said.
During the period, 1 004 tonnes of tea were produced.
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According to Ariston, this was a 45% decline compared to the prior period’s volume of 1 830 tonnes.
“Export tea volumes were contained given the prevailing lower export prices and export proceeds retention of 30%; however, the local demand remained firm and supported margins,” Jongwe said.
“Overall, tea sales revenue ended the period at 2,5% lower than the prior comparative period.”
He said production volumes for the period at 411 tonnes were 32% below the prior period.
“During the current period, 140 tonnes of macadamia nuts were sold, mostly relating to the current year stock and a few tonnes from prior year,” Jongwe said.
“In the prior comparative period, no current season macadamia nuts had been sold as at 31 March 2024. Significant sales will now be achieved as the season commences in April to end of May.”
Ariston also grows commercial maize, seed maize, soya beans, avocados, vegetables and fruits, which contributed 5% to the group’s revenue.
However, this was a decline of 16% compared to the proportion achieved in the prior period.
“No capital investments were made during the period as the group intensifies restructuring of business operations,” Jongwe said.
The mixed half-year performance left Ariston with US$0,90 to every dollar for short-term debt, leaving the firm with very little capital for future plans.
The firm ended the period with total assets of US$31,41 million, a decline from US$31,81 million in the prior year.
“The first half of the year is mainly characterised by incurring production costs, while the majority of selling activities occur in the second half. The group is looking forward to an improved selling season for the current year,” Jongwe said.
“The operating environment is expected to remain challenging, therefore, the group will continue to focus on cost control measures while driving revenue. The tea production season commenced well with harvests being slightly lower than those harvested in the prior comparative period.”
He said the group expects a harvest of more than 300 hectares from the maize crop planted at Kent.
