Inroads to tap into the export market bore fruit for listed sugar manufacturing concern, Star Africa Corporation during the 2021 financial year, the first quarter ended June 30 as the Group’s product ventured new territory in South Africa and DRC.
Sugar export sales doubled against comparable period last year as the company’s primary focus shifted towards generating foreign currency at a time sales on the local market in Zimbabwe dollars were being eroded by inflation.
“Efforts to increase our share of the exports market are bearing fruit. The supply of major raw inputs continues to be stable,” the Group said in a statement this morning.
“Export sales volumes, however, grew by 100% compared with prior year comparative period as the product gained market share in additional markets which include South Africa and the DRC,” it further stated.
Overall sugar sales volumes at Goldstar Sugars Harare (GSSH) were 7% lower than those recorded in prior year comparative period mainly due to intermittent water supply as well as disruptions presented by the COVID-19 pandemic.
A generally tough economic environment frustrated consumer appetite in the sugar derivatives department for Group subsidiary, Country Choice Foods (CCF) as sales volume fell 23 per cent.
However, demand for the company’s products has been healthy on both the local and export markets, the group said.
The Properties business maintained its occupancy levels, with collections having been affected as tenants grappled from the slowdown in business as a result of the COVID-19 pandemic.
In March, Star Africa recorded a 19 per cent drop in profits to ZWL$54,5 million compared to ZWL$68,1 million recorded the previous year.