Padenga's sale of alligator skins to more than double

Published: 26 September 2013

Padenga CE Gary Sharp told an analyst briefing this morning that the Group will focus on increasing throughput at the skinning service plant and the meat plant while sale of alligator skins will more than double in 2014 after recording a 28% decrease in revenue for the 12 months ending 30 June 2013.

"Sale of alligator skins will more than double in 2014 and we will also focus on increasing throughput at the Skinning Services Plant and the Meat Plant.

"Another aim is to increase breeder herd numbers to start domestic egg production," he said.

Sharp added that the firm will pursue increased hatchling numbers against their mission statement of 40 000 skins per annum.

Presenting on the financial results, group FD Oliver Kamundimu told the meeting that revenue went down by 28% to $11.053 million mainly driven by the move to the onset of culling from March to July.

"We had sold as at that point 15 000 skins out of a target of 43 00 for the full season and this is because we moved to the onset of culling from March to July," he explained.

Expanding on revenue drivers, he noted that total crocodile skins revenue was $9.107 million on a volume of 15 026 crocodile skin while total meat revenue was $161 291 on a volume of 86 482 kgs and lastly backstrap sales revenue was $175.

Commenting on the alligator operations, Kamundimu tolf the meeting that in their American operation, they sold 7 882 skins at a 90% first grade ratio and they have 9 136 animals to harvest being a 23% increase in production volumes.

According to Kamundimu the firm invested in an alligator skinning plant in Louisiana and a meat processing plant in Texas.

Sharp told the analyst briefing that FY2014 will be a 12 month reporting period bringing clarity to the group's profitability potential.

"Target for 2013 skin deliveries is 80% onward sales as finished skins to the 1st Tier market who are charged 25% more than other customers.

"We will pursue raw skin price increase against this objective," he said.

- zfn