Padenga Holdings Ltd’s after-tax profit increased to US$8 million in the full year to December 2016 (FY16) from US$7 million in FY15 after surpassing targeted crocodile skin sales.
By Fidelity Mhlanga
Turnover increased to US$31 million from US$27 million, helped by above-target crocodile sales and high grades achieved.
“The group once again achieved excellent results which were a consequence of surpassing the targeted crocodile skin sales volumes without compromising the premium quality grades required by the market,” the company chairperson Alexander Kenneth Calder said in a statement attached to financial results.
Cash generated from operating activities was down from US$13,6 million in FY15 to US$4,4 million in FY16 due to an increase in debtors of US$8 million toward the end of the financial year and an increase in biological assets excluding fair value adjustments of US$793 672.
Total assets for the company grew to US$71,4 million from US$61,6 million in 2015. Total liabilities grew to US$18,1 million from US$14,6 million.
The group’s Zimbabwe crocodile operation, which accounts for 88% of the group’s turnover, grew by 7% to US$27,5 million from US25,7 million recorded in FY15.
The 47 909 contract skins sold in FY16 represented an increase of 4% over the volume in the previous period.
The company said 47 806 crocodiles were culled in the period under review, an increase of 4% compared to prior volumes.
The company closed the period with a total of 150 172 grower crocodiles compared to 161 572 at the end of FY15. The company said forty new grower pens were constructed to facilitate the earlier movement of yearlings from hatching pens in spring each year.
The company said a 215kwp solar energy plant was commissioned at Ume farm that services the majority of the total energy requirements of the farm during daylight hours and provides material cost savings.
According to Calder, premium crocodile meat cuts demand in Europe remained subdued during the period and export prices remained depressed as a consequence.
There were no meat sales to the Asian market and this market has effectively closed. Total meat volumes sold decreased by 24% to 220 tonnes from 290 tonnes FY15.
The company said a strong operational performance in the United States of America alligator operation was negated by softening prices for watchband size skins and the fact that 38% of the volumes sold in the period were the last of the skin stocks damaged due to disruptions that occurred in prior periods.
The unit registered turnover of US$3,7 million, a 155% increase from US$1,7 million recorded in the prior year.