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Senior Business Reporter
ZIMBABWE Stock Exchange-listed firm, Padenga Holdings says increased business from its crocodile operations will have a positive impact on cost of sales this year driven by the current excellent crop of grower reptiles.

Company chairman Alexander Calder revealed in a statement accompanying the group’s audited financial results for the year ended December 31, 2014, that the group would start harvesting the crocodiles earlier this year than in 2014 as they have shown better growth rates than before.

“The Zimbabwe crocodile operation has an excellent crop of grower crocodiles on the ground. These have shown better growth rates to-date than what we’ve experienced in the past. We therefore anticipate that we’ll start culling these crocodiles earlier in the year than in 2014 and this should have a positive impact on cost of sales,” he said.

“On the meat side we’re pursuing trade with a new international customer and we expect to increase the volume of meat exported. This will improve margins in this section of business.”

Calder said total meat volumes sold increased by 35 percent to 282 tonnes from 209 tonnes sold in the prior reporting period.

“Demand for meat in Europe firmed during the period while Asian sales remained depressed. Export volumes at 137 tonnes, increased by 23 percent over prior period. Sales promotions of low value cuts into the local market were undertaken as an alternative to sales into Asia with a total of 145 tonnes being sold in financial year 2014.

“The increase in sales volumes recorded was pleasing and this was achieved on the back of firmer prices in both the European and local markets,” he added.

Calder said the group recorded a turnover of $27,9 million during the period compared to $26,9 million for the 18 months to December 2013.

“Operating profit realised amounted to $8,9 million and profit before tax was $8,7 million against an operating profit of $$5,7 million and profit before tax of $4,9 million in the prior period,” he said.

“The excellent results were achieved as a consequence of once again achieving our crocodile raw skin target, further improving skin quality grades across the operations and coupled with the application of stringent cost management within a challenging local environment.”

The report indicates Padenga’s local crocodile operation turnover grew four percent to $24 million from $23,1 million recorded in the 18 months to December 2013.

“The 43,078 contract skins sold in 2014 was unchanged from sales in the previous period. Operating profit and profit before tax increased by 93 percent and 127 percent respectively to $8 million against the operating profit of $4,2 million and a profit before tax of $3,5 million for the period,” he said.