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Business Reporter
LISTED agro-concern, Ariston Holdings Limited, has disposed of 50 percent of its shareholding in Claremont Orchards Holdings (Private) Limited to a Netherlands registered firm, Tuinbouw Zonder Grenzen under a US$2 million deal.

Part of the reason behind the transaction is to raise capital for further investment into macadamia nuts project in Manicaland province.

The company revealed this in a statement accompanying financial results for the full year ended September 31, 2021.

“During the period, the group disposed of 50 percent of its shareholding in Claremont Orchards Holdings (Private) Limited for US$2 million (equivalent to ZW$170,846 billion) to Tuinbouw Zonder Grenzen, a company registered in the Netherlands,” it said.

“Part of the rationale for the transaction was to raise funding for further investment into macadamia nut orchards in Chipinge and Chimanimani.”

Ariston said the transaction has enabled the entry of a foreign shareholder who has undertaken to provide significant funding for expansion of Claremont orchards into high value fruit and flower offering primarily for the export market.

“It is envisaged that the sum of the two investments will provide Ariston shareholders with greater value than current,” it said.

“Regulatory approval for the transaction has been received and the sale proceeds were received shortly after year-end.”

In terms of financial performance revenue for the year under review reflects a 31 percent growth when compared to prior year. The revenue growth was mainly driven by increase in sales of products grown and consumed in the local market.

“There has been increased focus on growing the contribution of local perennial crops so as to increase capacity utilisation and broaden the group’s product offering,” said the company.

“Current year gross margin was maintained at the same level as in prior year of 55 percent. Current year profit from operations declined to 11 percent of revenue compared to 21 percent of revenue experienced in the prior year comparative period due to the impact of the miss-match arising from revenue from exports where Reserve Bank of Zimbabwe retention at 40 percent is being paid at a rate significantly lower than that being charged by suppliers resulting in erosion of value.”

In the year under review an estimated 20 percent was lost from the revenue line as a result of the 40 percent RBZ retention.

After taking into account fair value adjustments and the monetary loss, the group realised an inflation adjusted loss before interest and tax of $244 million, compared to a profit of $112 million for the prior comparative period.

Losses were made on fair value adjustments due to these being denominated in US dollars and the US dollar interbank rate lagging behind inflation index.

On the impact of Covid-19, Ariston said the continued existence of the pandemic had negative impact on global economies resulting in unsettled markets.

“Demand for good quality macadamia nuts held firm although there was a slight weakening in the prices for smaller and lower quality nuts,” said the company.

“Overall selling prices for the local sales remained relatively stable, although timing of lockdowns had an effect on sales of fresh fruit.

“Yields and pricing for cereals, which are grown for the local market were good. This has enabled improved contribution by local product sales to the group results,” it said.