Padenga posts US$2m profit

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Listed Padenga Holdings posted a US$2 million profit for the six months ended June 2016 from US$2,3 million reported during the same period last year.

By Fidelity Mhlanga

In a statement attached to its financial results, the company said it sold 20,978 skins compared to 9143 skins in the same period last year.

“Of that total 12 053 were alligator skins.We opened with 7 944 alligator skins in stock for the foreign operation and harvested 4 109 in the period under review,” said the company.

The group recorded revenue of US$6,108 million in the six months to June 2016 compared to US$4,3 million for the comparable period in 2015.

Cash utilised by the group for operating activities increased US$598 863 for the six months ended 2015 to US$1,5 million in the period under review.

The company said the increase in cash utilisation was a consequence of a strategic decision to increase stockholdings of critical inputs in the Zimbabwe operation.

Nile crocodile operations revenue was at US$4,2 million in line with the amount of US$4,2 million recorded in the six months to June 2015.

The number of skins sold increased marginally from 8,895 to 8,925 in the period under review.

The operation recorded a loss before tax of US$1 million compared to a profit tax of US$382 744 for the prior comparative reporting period.

This was largely owing to the fact that the 12,053 skins sold in the period were of poor quality due to the damage caused by disturbances reported last year.

The company said for the Nile crocodile operation it expects a successful year.

“The condition of the livestock is exceptional, the market for premium market quality skins is steady and expenses are being managed to remain within budget. For the alligator business, the effects of disturbances to production which occurred in 2015 will continue to impact in the current year. This unit will therefore post a loss once again this year but management remain confident of returning the business to profitability,” said the company.

Padenga specialises in rearing crocodiles, alligators and export of Nile crocodile and alligator skin and meat.

The group has a 66,67 % stake in Lone Star Alligator Farms, an unlisted company based in the United States of America that specialises in alligator farming.

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