Padenga Holdings has posted a profit of $6,5 million for the year ended December 31 2014 up from $4,1 million in 2013 after the group met its crocodile raw skin sales target, improved skin quality grades across the operations and applied stringent cost management.
BY TARISAI MANDIZHA
In the period under review, revenue increased to $27 969 684 from $26 906 493 in 2013 while operating profit amounted to $8,9 million from $5,7 million in 2013.
In a statement accompanying the group results, Padenga Holdings chairperson, Alexander Calder said 43 078 crocodiles were culled which was right on budget and in line with what was achieved in the prior period.
Calder said the quality grade improved from 92% first grades attained with what was culled in the prior period under review.
“These results were achieved as a consequence of once again achieving our crocodile raw skin sales target, further improving skin quality grades across the operations and coupled with the application of stringent cost management within a challenging local environment.
“In the current year culling and sales occurred to the end of December whereas in the prior period culling was essentially done by the end of November, allowing the company time to collect all trade debtors before year end,” Calder said.
He said the average skin size achieved decreased marginally by 2% to 35,7cm in the prior year.
“We experienced unusually cool weather conditions in Kariba from August to mid-October and this marginally impacted on the growth we had anticipated. This contributed to the shortfall in average skin size. We closed the period with a total of 163 274 grower crocodiles on the ground compared to 164 179 at the end of the prior period,” he said.
He added that the number of grower crocodiles present was constant over the two reporting periods and was consistent with our objectives of culling 43 000 animals annually.
Calder said cash generated from operating activities dropped to $5,4 million in the period under review from the $8,2 million for the 18 months period to December 2013. This decrease in cash generation was mainly attributed to an increase in debtors.
Calder said the Zimbabwe operations’ turnover increased by 4% to $24,1 million from $23,1 million in 2013.
While the amount of skin sold was unchanged from sales in the previous period of 43 078, operating profit and profit after tax increased 93% and 12% respectively to $8 060 and $8 037.
During the period under review, the United States Alligator operation recorded a 3% increase in turnover to $3,9 million while volumes were up 8% to 14 890 skins as compared to 13 825 skins in 2013.
Calder said the demand for meat in Europe firmed during the period while Asia sales remained depressed. Total meat volumes sold increased by 35% to 282 tonnes from 209 tonnes sold in prior period.
He said export volumes at 137 tonnes, increased by 23% over the 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 the 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 said.