RBZ deal boosts Ariston

RBZ deal boosts Ariston
Published: 24 May 2018
AN export incentive scheme unveiled by the central bank two years ago spurred growth of exports at listed agro-industrial firm Ariston Holdings Limited, which yesterday reported a 53 percent rise in revenue to $5,3million for the half year to March 31, 2018.

Ariston, which recorded over $3,48 million in revenue the previous year, said growth during the review period was also underpinned by strong volumes and firming prices.

Chief executive officer Paul Spear said in a commentary accompanying the company results that the Reserve Bank of Zimbabwe (RBZ)'s export incentive had given the firm impetus to export products that would be difficult to ship offshore without assistance.

"On the back of the RBZ export incentive scheme, the group has been able to increase its export sales offering to include by-products of our production processes which, without the incentive scheme, would not be economic to export," Spear said.

To ensure that Zimbabwean exports are competitive under a dollarised economy, the RBZ established the $200 million and $300 million export incentive facilities which are monetised by bond notes.

In January, the central bank said since its inception in 2016, the incentive scheme has enhanced competitiveness of exports.

It said this had significantly contributed to the growth of exports which grew by 36 percent from US$2,8 billion in 2016 to US$3,8 billion in 2017.

Spear said despite the rise in sales and volumes, the operating environment remains volatile, with high production costs and currency shortages combining with an erosion of disposable incomes to affect company operations.

Operating income improved to $1,2 million during the review period, from $0,16 million during the comparable period the previous year, Ariston said.

Ariston posted $0,63 million profit during the review period after reporting a $1,4 million loss the previous year, benefiting from a marginal slip in finance costs.

Ariston operates horticulture farms in the eastern part of the country, namely Southdown Estates, Claremont Estate and Kent Estate.

Spear projected that the second half of the financial year will be positive as it coincides with the harvesting season.

"Due to the cyclical nature of our agricultural model, the second half of the year represents the harvesting and selling season for the majority of our products. The positive trends apparent in the first half of the year will be enhanced in the second half of the year," he noted.

- fiingaz
Tags: RBZ,


Latest News

Latest Published Reports

Latest jobs