Philemon Jambaya
Assistant Editor
Zimbabwean sugar producer StarAfrica Corporation took a hefty ZWL$679 billion loss for the year ending March 31, 2024. This significant setback stemmed from a three-month plant shutdown due to raw sugar supply challenges. However, the company's leadership is optimistic about a rebound, citing resolved supply issues and a focus on cost reduction.
In stark contrast to the ZWL$13 billion profit recorded the prior year, StarAfrica's financial results paint a picture of a company grappling with disruption. Board chairperson Rungamo Mbire attributes the loss primarily to the raw sugar shortage and the subsequent plant shutdown. The company has since addressed this challenge, paving the way for a more promising future.
Mbire remains confident, highlighting the company's commitment to streamlining operations and minimizing costs. These measures aim to return StarAfrica to profitability. "Active engagements with our various stakeholders have largely resolved the raw sugar supply challenges," he assures.
With the raw sugar issues behind them and a plant refurbishment program well underway, StarAfrica anticipates a significant production volume recovery. Furthermore, Mbire credits the introduction of Zimbabwe's new currency, the Zimbabwe Gold, with stabilizing the economy. He believes this stability will hold if the money supply remains tightly controlled.
Encouragingly, StarAfrica's total turnover for the year under review reflects a 23% increase to ZWL$1.90 trillion. This growth can be primarily attributed to inflationary pressures.
Goldstar Sugars a subsidiary of StarAfrica, is actively engaged in a refurbishment and replacement program for critical machinery. This initiative aims to enhance plant efficiency and elevate the quality of refined sugar produced.
The company also maintains its certifications from The Coca-Cola Company and the prestigious FSSC 22000 series for food safety, demonstrating its commitment to quality.
Despite positive strides, StarAfrica's sales figures reveal a challenging year. Sales volumes of granulated white sugar fell by 32% to 55,799 tonnes, compared to 82,321 tonnes the prior year. Production throughput mirrored this decline, with a 32% decrease to 52,605 tonnes.
Country Choice Foods, another subsidiary, experienced a 39% drop in sales volumes of sugar specialty products. However, they also introduced new offerings like bicarbonate of soda, desiccated coconut, and muesli, showcasing a spirit of innovation.
Mbire acknowledges that exchange rate fluctuations throughout most of the year negatively impacted product uptake in mainstream retail outlets.
The company's properties business exhibited stagnant performance, generating rental income of ZWL$10.3 billion, a marginal difference from the previous year's ZWL$10.4 billion.
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