Sugar firm clinches Coca-Cola supply deal
SUGAR producer Starafricacorporation subsidiary, Gold Star, has clinched a major deal that will boost its operations through supplying sugar to The Coca-Cola Company (TCCC) in the region and beyond.
The company revealed this in a statement accompanying the group’s financial results for the year ended 31 March 2021 where it also stated that the business was now out of the woods.
During the period product range was expanded as the unit registered growth with its thrust to maximise on production of sugar specialties and other sugar related products in synergy with production from Gold Star Sugars.
“Post-year end, Gold Star Sugars Harare (GSSH) was also given full authorisation by TCCC for bottler ingredient supply to the whole of Africa,’ said the company.
“This will open new markets for GSSH and pave the way for sugar specialty products to be exported into the region and beyond.”
TCCC is a leading international beverages manufacturing firm. However, Starafricacorporation said during the year GSSH’s production was adversely affected by an increased plant breakdown profile.
“The business unit sold 60 386 tonnes against 63 993 tonnes sold last year. The 5,6 percent drop in sales volumes is largely attributable to interruptions to production due to Covid-19 related factors and plant downtime,” it said.
“Demand for our products remained strong with volumes constrained only by production challenges. A comprehensive capital investment strategy and equipment maintenance plan are now in place and will be implemented at an accelerated pace now that the business has returned to viability.”
The return to solid footing is expected to have a positive impact on the business, which will improve productivity and profitability in the ensuing year, said the company. “The plant continued to be certified by TCCC as well as Food Safety System Certification under the FSSC 22000 series,” it said.
Starafricacorporation has said the jump in volumes sold was indicative of the success of its efforts towards increasing the market share.
Overall, the group’s turnover increased by 23 percent to ZWL$5,08 billion compared with ZWL$4,12 billion realised in the prior year. On the properties business, the company said the division recorded a 54 percent increase in turnover from ZWL$13,4 million recorded in the prior year to ZWL$20,7 million.
The increase was due to improved occupancy levels and higher negotiated rental amounts per month charged despite the impact of the Covid-19 pandemic, which had an adverse impact on tenants’ ability to make rental payments timely.
The group’s secondary scheme of arrangement, whose tenure expires in February next year, remains in place with 99,8 percent of creditors having been settled, leaving an amount of only ZWL$1,3 million in liabilities under the scheme as at the end of year under review with ZWL$654,451 of this balance having been settled immediately after year end, it said.
“The group continues with efforts to trace the whereabouts of the few remaining local scheme creditors with a view to clearing the small amounts still outstanding within the time frame of the scheme,” said the sugar producer.
“All outstanding foreign liabilities have now been settled.”
The group, however, incurred a monetary loss of ZWL$163 million caused by depreciation of the value of the monetary assets it holds, which resulted in profit after tax of ZWL$109,7 million, compared with ZWL$185,9 million achieved last year.
“In historical terms, revenue increased by 542 percent to ZWL$3,8 billion from ZWL$597 million recorded in the prior year, while profit for the year increased by 651 percent to ZWL$497 million from a prior year achievement of ZWL$66,2 million.
“The group’s net working capital position strengthened significantly by 78 percent to ZWL$306, 2 million up from ZWL$172,2 million achieved last year,” said Starafricacorporation.-chronicle.cl.zw
