2. PADENGA
Padenga group came in second with a year to date increase of 81.11 percent. Padenga’s operations include Nile Crocodile Farms in Zimbabwe and the US-based Lone Star Alligator Farms.
The group recorded a fair set of results with revenue of $6.1 million in the six months to June 2016 compared to $4.3 million last year. The top line increased as the group, sold 20 978 skins compared to 9 143 skins in the same period last year. Of that total 12 053 were alligator skins. The group opened with 7 944 alligator skins in stock for the foreign operation and harvested 4 109 in the six months to June 2016. Profit before tax for the six months under review amounted to $2.7 million against $3.1 million in the prior period.
The group expects revenue to largely come in the second half since the first half of the year is essentially a cost accumulation period for the company.
Cash utilised by the group for operating activities increased from $598 863 for the six months ended 30 June 2015 to $1.5 million in the period under review on the back of a strategic decision to increase the group’s stockholdings of critical inputs in the Zimbabwe operation.
The group has started constructing a solar plant at one of its farms in a bid to reduce costs and dependency on diesel for power generation.
The group closed the first half with a total of 144 236 grower crocodiles on the ground compared to 140 923 at the end of June 2015 and is seeing better quality in the pens than in previous years and as it anticipates to meet its culling volume targets by the end of November this year.
The fundamentals of the business remain sound with the company endowed with excellent crop of crocodiles on the ground. Also cash and working capital management of the company is good. As such, ongoing initiatives to further enhance animal welfare will contribute towards improved skin quality.
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