Padenga in bid to improve crocodile skins quality

Michael Tome Business Reporter
|STOCK exchange-listed, Padenga Holdings Limited says it has invested in a research laboratory with aims to improve the crocodile skins quality as the company seeks to maintain and grow its hold on the international market.

The newly established research facility is set to produce premium quality skins for the crocodile producer which has high returns on the global market.

Padenga said the initiative was meant to curb cases of skin flaws that lead to reduced prices on the market.

“With the research laboratory facility now complete on the Zimbabwe operation, management will pursue advanced scientific initiatives relevant to further improving skins produced and fully understanding the origin and control methodology for defects responsible for reducing skin quality.

“The facility will enable evidence-based research to enhance good animal health and husbandry operations that advance customer satisfaction with the products produce,” said Padenga in the statement accompanying the half-year results.

This is on the back of a $195,58 million net profit in the six months ending June 30, 2019 from a 2018 figure of $5,73 million, attributed mainly to fair value gains from biological assets in line with the change in functional currency.

Padenga’s outturn closed the period under review at $25,1 million, 161 percent in the positive from $9,6 million recorded in the prior year.

Profit before tax for the six months under review closed at $265,6 million compared to $7,7 million in the comparable period in 2018.

Capital expenditure for the period under review rose to $4,6 million from $2,6 million last year translating to a  77 percent surge attributable mainly to the inflationary environment obtaining in the country.

Basic earnings and headline earnings per share closed at 35,88 cents from 1,04 cents in the comparable period last year.

Lately the firm has been on the course of diversification with extreme interest in gold production thereby moving away from the traditional crocodile skin products business.

For the six months to June this year, Padenga Holdings sold 17 772 crocodile skins 2 000 less than the 19 863 sold in the same period in 2018.

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