PADENGA Holdings Limited has emphatically delivered one of its strongest financial years to date, marking a clear inflection point in the company’s strategic transformation.
The financial year 2024 performance was underpinned by a 43,3% surge in total revenue to US$223 million, driven primarily by the mining division, which now contributes 86% of group revenues.
The mining arm, led by Dallaglio, not only achieved record gold production volumes of 2,740kg (+29,2%) but also capitalised on buoyant commodity prices, resulting in a staggering 392% jump in net profit to US$40,2 million.
The earnings power of the business has significantly shifted, with earnings before interest, taxes, depreciation and amortisation (EBITDA) up 169,1% and earnings before interest and taxes rising 155,4%, pointing to strong operational leverage and margin expansion across the board.
The EBITDA margin rose to an impressive 32%, while gross margin climbed to 50%, a testament to Padenga's cost discipline and pricing advantage in a high-inflation environment.
Liquidity and capital structure metrics also reflect strategic management. The current ratio and quick ratio improved notably to 1,40 and 0,38 respectively, while cash and cash equivalents rose 339% to US$5,06 million, indicating stronger financial flexibility.
On the balance sheet, prudent deleveraging efforts have seen the debt-to-asset ratio fall to 0,24, and debt-to-equity ratio contract to 0,46, enhancing shareholder equity value and reducing financial risk.
Importantly, the company’s return metrics have skyrocketed: Return on equity increased to 33% (from 9,32%).
- Padenga halts croc meat exports as EU tightens screws
- Eureka boosts Padenga
- ‘Zim inflation to hit 400% by Q1 2023’
- Padenga returns to profitability
Keep Reading
Return on assets rose to 17,19% (from 3,91%). These signal exceptional efficiency in capital deployment and asset utilisation — key indicators of long-term value creation.
We reaffirm our BUY recommendation on Padenga Holdings Limited based on a compelling blend of fundamentals:
Earnings momentum: Earnings per share grew 257% in the financial year 2024 and is forecast to rise another 9,74% in the financial year 2025, driven by stable production and favorable gold price dynamics.
Operational excellence: Padenga’s ability to scale mining operations while optimising agribusiness profitability reflects sharp execution.
Strong balance sheet: Deleveraging and improved liquidity reduce risk and free up capital for reinvestment.
Sector tailwinds: With gold expected to reach US$3,350 per tonne ounce by year-end and first quarter already showing price momentum, Padenga is ideally positioned to benefit.
In summary, Padenga is no longer just an agribusiness—it’s a high-margin gold producer with a diversified, disciplined, and growth-focused strategy.
For investors seeking exposure to the commodities sector with embedded value and operational efficiency, Padenga represents a high-conviction opportunity.
This story was written by Fincent Securities, a diversified one-stop financial services group adopting technology to drive innovative provision of research, stockbroking, micro-finance and corporate advisory.
