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Business Reporter

AGRO-CONCERN, Ariston Holdings revenue for the half-year ended March 2016 slipped 32 percent to $3,8 million on reduced potato production due to the poor start to the rainy season and erratic utility supplies. Zimbabwe experienced a late onset to the rainy season due to the El Nino weather phenomenon which affected agriculture production in the 2015/ 16 season.As a result, Ariston missed its potato planting schedule in the first-quarter which had a knock on effect on the group’s revenue streams.

Ariston reported loss before tax of $0,1 million from a profit position of $1,4 million due to the strain in revenue.

Loss for the period from continuing operations amounted to $2 million from prior year’s $0,1 million profit. Finance costs of $2 million were incurred.

Group chief executive Mr Paul Spear said power shortages at Claremont stifled spring planting, subsequently reducing potato production compared to prior year levels.

“Rainfall in the first-half of the season was very low in all estates. High temperatures and erratic power supplies combined to make the start of the season difficult. As a consequence, yields of most crops were below expectation, with the exception of macademia nuts,” said Mr Spear.

Southdown Estates’ contribution to group revenue increased 8 percentage points to 75 percent in the period under review. Its operating profit however fell 69 percent to $0,4 million.

Claremont Estates contributed 16 percent to group’s total revenue, down from 23 percent in the comparable period and incurred a $0,4 million operating loss due to lost potato revenues.

The group expects a record crop for its macademia harvest with overall quality rated as “acceptable.”

Demand for tea is strong with prices expected to remain strong although production was below prior year levels.

Yields for the stone fruits, under the group’s horticulture unit were above last year with generally “excellent” quality.

Mr Spear said apple harvest was in progress, with yields in line with prior year’s but below expectations due to a hot and dry spring season.

The group is however, upbeat for the year ahead on good performance from macademia nuts and development of the young orchards at Claremont Estate.

The company is currently upgrading macademia drying and processing plant which should be operational later in the year.