FACING persistent macroeconomic headwinds, diversified agriculture group Ariston Holdings is seeking long-term financial stability by engaging development finance institutions (DFIs) and international partners for funding.
The move comes as the company reports continued losses driven by soaring production costs.
The Zimbabwe Stock Exchange-listed firm posted a US$1,43 million loss for the first half of the year. While still significant, this represents an improvement over the US$2,1 million loss recorded in the same period last year.
Chief executive officer Leon Nortier confirmed the strategic pivot this week, highlighting the company's efforts to secure capital that can help it navigate the country's challenging economic climate and return to profitability.
"Like many companies in Zimbabwe, Ariston has not been spared from the difficult macroeconomic environment. Some of our challenges stem from legacy issues, which we have been systematically resolving. Despite these pressures, our outlook remains strong, and we have a clear strategic plan in place,” he told businessdigest in an interview.
"We have successfully secured substantial short term funding, including shareholder support, which stabilises operations in the medium term. In addition, we are engaging with DFIs and international partners to secure long term funding, recognising that agriculture is by nature a long term business."
Nortier added the firm had been con strained from paying salaries.
"It is true that the company has faced arrears in employee payments, largely due to liquidity constraints in Zimbabwe and the delayed timing of crop receipts. However, payments are being made consistently, and our employees remain focused and committed, knowing that management is working hard to bring all outstanding amounts up to date," he said.
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General Agriculture and Plantation Workers’ Union of Zimbabwe deputy secretary general Austin Muswere told the businessdigest a fortnight ago that workers at Ariston’s maize producing Kent Estate had embarked on industrial action over unpaid wages.
“Indeed, Ariston workers were on strike after the management failed to honour (an) agreement. All monies were supposed to be paid on or before 15th August,” he said.
“On August 16, they went on a strike, and on the 4th day, we managed to talk to the employees, and on August 21, all employees went back to work.”
