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US$4,8m loss for StarAfrica Corporation
22/12/2012 00:00:00
by Roman Moyo
 
Plantation ... StarAfrica Corp lost big
 
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STARAFRICA Corporation says it suffered a loss before tax amounting to US$4, 8 million for the interim period ending September 30, 2012 against a loss of US$2, 6 million incurred in the comparative period last year.

Company chairman Joe Mutizwa says the loss for the period under review was compounded by the non-operations of the core business from June through September due to a lack of raw sugar.

“Production was adversely affected by the cessation of operations in June this year when the company experienced debilitating cash flow constraints and could not meet its raw sugar payments to its strategic supplier,” Mutizwa.

The Zimbabwe Stock Exchange (ZSE) listed company said discontinued operations recorded a loss before tax of US$74 273 compared to US$906 554 last year.

As a result, the refinery was not operational for the rest of the period under review. However, Country Choice Foods (CCF) operated throughout the half year and maintained its market share.

CCF realized a profit of US$537 271, which was 20 percent above the comparative period last year.

Goldstar Sugars Harare sold 9, 749 tonnes of refined sugar for the half year compared with 31 148 tonnes for the comparative period last year. Production was affected by the stoppage of operations in June 2012 when the company experienced debilitating cash flow constraint and could not meet its raw sugar payments to its strategic supplier.

As a result, the refinery was not operational for the rest of the period under review.

However, Choice Foods (CCF) operated profitably throughout the half year and maintained its market share. CCF realized a profit of US$537 271 which was 20 percent compared to last year.

Mutizwa said the arrangements for upgrading plant at GSSH have reached an advanced stage. The upgrade which will take eight months to complete, will result in an increased production capacity, higher yield, better sugar quality and improved efficiencies.

“This development will secure refined sugar supplies to the domestic market. The upgrading will not interrupt the production and supply of Goldstar refined sugar on the domestic market,” Mutizwa said.

While Goldstar Sugars Harare was shut down for lack of raw sugar, extensive work was carried out on the plant to address challenges associated with product quality, efficiency and process loss.

Negotiations were commenced with Tongaat Hullet Zimbabwe for the resumption of supplies to GSSH.

These culminated in the conclusion and signature of a supply arrangement which enabled GSSH to resume the production of refined sugar in the post reporting season period.
 



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