Zimbabwe crocodile company Padenga in $9 million profit

Padenga Holdings today reported a 23 percent increase in after tax profit to $8.9 million on the back of increased revenue.

Revenue increased by 13.75  percent from $27.5 million in the preceding year to $31.3 million.

Operating profit before depreciation, impairment and amortisation increased by 26.3 percent from $9.99 million in the previous year to $12.6 million.

The group benefited from the bond note export incentive of $1.4 million.

However, cash generated from operations fell from $13.7 million in the preceding year to $4.2 million.

“This decrease in cash generation was a function of an increase in debtors of $8 071 300 and an increase in biological assets excluding fair value adjustments of $793 672. The increase in debtors was a function of culling into Q4 and shipping the skins just before year end,” chairperson Ken Calder said in a statement accompanying results.

The number of crocodiles culled increased by 4 percent to 47 806 and the skin quality grade achieved improved from 96 percent first grade to 97 percent.

Calder said the total number of grower crocodiles on the ground dropped from 161 572 in the previous year to 150 172 as the company bids to achieve a sustained annual production of 46 000 skins.

Total meat volumes sold declined by 24 percent to 220 tonnes from 290 tonnes previously but revenue fell by a quarter as customers pivoted towards lower value cuts.

The Zimbabwe crocodile operation, which accounts for 88 percent of group’s revenue saw a 7 percent increase in revenue to $27.5 million as volume of contract skins sold increased by 4 percent to 47 909.

Operating profit and profit before tax from the Zimbabwean operation also increased 26 percent and 10 percent to $12.9 million and $12.6 percent respectively.

Calder said the United States alligator operation was affected by softening prices for watchband size skins and that 38 percent of the volumes sold in the period were last of the skin stocks damaged by the disruptions that occurred in the prior periods.

The unit recorded a 155 percent increase in revenue to $3.7 million in the period as volumes rose 143 percent to 20 835 skins.

However, the operation widened its operating loss to $614 841 from $236 8966 previously as nearly a third of the  skins sold were of low quality.

Total assets increased by percent to $71.5 million from 61.6 million recorded in the previous year as the group expanded the capacity at Lone Star Alligator Farms in Texas.

“Six additional production barns were constructed in the year under review thereby doubling the production capacity,” Calder said.

Additionally, the group increased its capital expenditure to $4.3 million from $2.4 million spent in the previous year.

The group declared a final dividend of 83 cents per share.- The Source

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