Zimpapers Logo

SUGAR cane producer Hippo Valley Estates says it will optimise operational efficiencies in order to improve profitability by year-end.

This comes after half-year revenue declined 15 percent to $70,2 million from $82,5 million in the same period while after tax profit went down to $2,3 million from $9 million in 2014.

Chief executive Sydney Mtsambiwa said the group is seized with optimising operational efficiencies to balance the input/output ratio.

“Our drive to reduce costs will continue and this will see improved competitiveness under a challenging trading environment. The strategy encompasses cost reduction for goods and services that we procure, improve our own internal efficiencies so that input and output ratios improves,” he said.

Mr Mtsambiwa said the company is making efforts to minimise leakages in the systems.

Sugar production at half-year decreased 6 percent to 157 877 tonnes compared to 167 425 tonnes in 2014 same period but Mr Mtsambiwa said the group is optimistic of an increase at full year.

“This is only six months and production is currently underway and we hope this will change at year end,” he said.

Mr Mtsambiwa said sugar production levels in the 2016 /17 financial year would largely depend on the extent of rainfall received in the catchment area of the industry’s supply dams.

“A return to regular growing conditions, together with the benefit of the intensive agricultural improvement plans that are well under way should lead to industry and company sugar production increasing to around 540 000 tonnes and 270 000 tonnes respectively by 2018 / 19,” he said.

For 2015, the sugar industry is forecasting a decrease in sugar production to 410 000 tonnes from 445 000 tonnes in 2014.

Meanwhile, Hippo Valley Estates last Friday handed over to the Civil Aviation Authority of Zimbabwe (CAAZ) a refurbished Buffalo Range Airport in Chiredzi. The refurbishment of the airport is expected to stimulate economic activity in the low veld by giving investors and tourists’ access.

Hippo in partnership with local Trust, Malilangwe and CAAZ refurbished the airport at a cost of $212 000. Mr Mtsambiwa said Buffalo Range Airport, which was established in 1965 was key to the company since it is a gateway to the south and east.

CAAZ GM David Chaota said refurbishments were done on the fire station and the control tower while the runway was extended.

Mr Chaota said in the year to date, the airport has witnessed a 4 percent increase in movements with at least 80 plane movements per month while passengers are sitting at 250 for the same period. – Wires.