Sugar producers, Hippo Valley Estates Limited is banking on the successful implementation of the government’s Transitional Stabilisation programme to turn around the fortunes of their business, currently struggling due to the prevailing economic situation in the country.
According to the group Acting Chief Executive Officer Aidev Mhere, positive turn around will only be achieved after a successful implementation of the Government’s Transitional Stabilisation Programme Reforms Agenda introduced last month.
“Expectations of a positive turnaround will depend largely on the successful implementation of the Government’s Transitional Stabilisation Programme Reforms Agenda (October 2018 – December 2020) and commitment to good governance in both the public and private sectors,” he said.
Meanwhile the group total revenue for the six months ended 30 September 2018 increased by 29% to US$93,2 million as compared to US$72,4 million underpinned by increased sugar production.
Mhere attributed the positive growth to fiscal and monetary developments introduced by the government which created uncertainty and caused panic buying.
“The benefits of these positive factors were however partially negated by inflationary pressures fueled by shortages of foreign currency and speculative pricing activities by suppliers of production inputs.
“Operating profit amounted to US$15,9 million (2017: US$14,8 million) before accounting for a cane valuation charge of US$5,8 million (2017: US$6,8 million) largely attributable to standing cane on some 1 716 hectares of Company cane fields currently occupied by third parties.
“As a consequence, operating profit and profit for the period amounted to US$10,1 million and US$7,0 million (2017: US$8,0 million and US$5,6 million) respectively,” he said.