PADENGA Holdings Ltd posted a profit after tax of US$9,9 million in the full year to December 2015 (FY15) up from US$8,7 million in the prior financial period (FY14) buoyed by increased crocodile skin sales volume, skin quality and strict cost containment measures.
“The group achieved excellent results which were once again , a consequence of achieving the crocodile raw skin sales volume, further improving crocodile skin quality grades, producing the skin size profile requested by the customer and coupled with stringent cost management within a challenging local environment,” said the company in a statement attached to its 2015 financial results.
The group said cash generated from operating activities swelled to US$13,6 million from US$5,4 million during the period under review.
An increase in cash generation was attributed to an increased operating profit and decrease in debtors of US$3,4 million.
The company said a decrease in debtors was caused by finishing culling earlier in the period under review and collecting the bulk of sales revenue before year end.
The flagship Zimbabwe crocodile operation unit, which accounts for 94% of turnover, had an outstanding year as turnover increased by 7% to US$25,7 million from US$24 million the prior year.
At least 26,025 contract skins sold in the year represented a 7% increase in volumes as compared to the previous year.
A total of 46,025 crocodile skins were culled in the period under review which was a 7% increase compared to both budget and prior period volumes.
The skin quality grade achieved improved from 93% to 96% in the period under review.
According to the group, the number of crocodiles on the ground was consistent with sustaining annual production at
46 000 skins.
Padenga built forty new pens at Ume farm to facilitate early movement of crocodiles from hatching pens in early summer and reduce overall stocking densities to improve skin quality.
The company took initiatives to provide power backups solutions and extend water pipelines in all farms in the face of dropping water levels in Kariba.
The alligator operation recorded disappointing results as operational disruptions contributed to lower skin quality, subdued volumes and depressed prices.
The group’s total assets increased from US$54 million to US61, 6 million.
Total shareholders’ equity improved from US$41,9 million to US$ 46, and 9 million.
The group increased its shareholding in Lone Star Alligator Farms from 50% to 67% following the withdrawal of one of the members on 30n April last year.
With demand for crocodile meat in Europe firm during the period, total meat volumes sold surged by 25% to 290 tonnes from 231 tonnes sold the prior year.
“The fundamentals of business remain sound.We have an excellent crop crocodiles on the ground. Ongoing initiatives to further enhance animal welfare will contribute towards improved skin quality. Cash and working capital is good. We anticipate a good year,” the group said.