Firming crocodile skin prices buoy Padenga

HARARE - Crocodile skins and meat producer, Padenga Holdings, yesterday reported a 53 percent increase in profit after tax for the year ended December 31, 2017, buoyed by firming prices.

The group reported a profit after tax of $12,9 million for the period under review, up 52,98 percent from $8,4 million reported in the previous period.

In a statement accompanying the results, group chairperson Alexander Calder said the improvement was a result of firm prices supported by other factors.

“The group, again, produced outstanding financial results. These were a consequence of firm prices coupled with improved operational efficiencies and fiscal discipline that resulted in reduced cost of sales,” said Calder.

The group recorded an operating profit before depreciation, amortisation, impairment and fair valuation adjustments of $13,9 million after reporting $12,6 million in 2016.

The group’s revenues for the 12 months to December 31, 2017 amounted to $30,3 million. Revenue for the prior period to December 31, 2016 was $31,3 million.

Calder revealed that the group’s export incentive receipts were more than of $1,5 million and a significant increase from the group’s incentive receipts in 2016.

“The group benefited from an export incentive of $1 559 811, up from the $1 393 460 received in 2016,” he said.

The Zimbabwe crocodile operation, which is the group’s major operation with a 94 percent contribution to total revenue, turned over $28,5 million — a four percent increase from $27,5 million recorded in the prior period although the 43 313 contract skins sold in 2017 represented a decline of 10 percent over the volume sold in the previous period.

Calder said the increase in turnover was a result of firmer prices realised during the year.

“The increase in turnover is a result of firmer prices achieved during the year under review. Operating profit and profit before tax increased by eight percent and 35 percent to $13 934 470 and $17 008 557 respectively,” said Calder.

—  The Financial Gazette

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