Starafrica corporation’s investments paying dividends

Sugar processor, Star Africa Corporation’s capital investments into production are beginning to bear fruit as its full year performance to March 31, 2022 is showing signs of recovery.

During the six-month period, its Goldstar Sugars (GSS), recorded a 38 percent increase in production volumes, to 82 399 tonnes compared to 59 571 tonnes achieved in the same period in 2021.

“This was primarily due to capital investments made and a rigorous equipment maintenance regime. The latter was introduced during the year under review and has reduced the refinery’s downtime,” said the group in an update for the half year period.

According to Star Africa, demand for granulated sugar remained high in the market resulting in an increase in sales volumes by 37 percent. The group has previously bemoaned utilities challenges with erratic power supplies affecting its factory plants and resulting in reduced production time.

However, during the half year period under review, electricity supplies improved slightly, compared to last year, but remained unstable, mainly due to electrical faults. On the other hand, operational challenges faced by the Harare City Council adversely impacted the effective reticulation of water to the plant. This resulted in a higher volume of water being sourced from private suppliers.

At Country Choice Foods (CCF), the group commissioned syrup filling and icing packing machines during the period under review. These contributed to an increase in the production volumes of this business unit resulting in a 29 percent increase in production of sugar specialties to 1 920 tonnes from 1 488 tonnes recorded in 2021.

During the year under review, CCF also expanded its portfolio by launching several new products into the market. These comprised chocolate icing, lemon icing and mint icing, raisins, cocoa powder, caramel coated popcorn, as well as bun and bread premixes.-ebusinessweekly