eBusiness Weekly
Business Writer
The Star Africa board remains confident that the company will continue on its upward trajectory despite the current challenges emanating from COVID-19.
The company said although it may not be spared the ravages of the pandemic, it remains resilient as local demand for its products continues to be strong.
In addition to strong demand, the company says it has maintained healthy levels of stocks of both raw materials and finished products, which position was facilitated by a prudent cash management strategy that ensured solvency throughout the quarter.
“The supply of major raw inputs continues to be stable,” said Star Africa in a trading update for the quarter ended 30 June 2020.
The impact on the company’s business during the quarter under review was only felt through delays in the supply chain, in respect of foreign-sourced inputs, as the company continued to operate as it is deemed an essential service (which is allowed to operate uninterruptedly).
Looking at the overall first-quarter performance, Star Africa said sugar sales volumes at Goldstar Sugars Harare (GSSH) were 7 percent lower than those recorded in the prior year comparative period mainly due to intermittent water supply as well as disruptions presented by the COVID-19 pandemic.
Export sales volumes however grew by 100 percent compared with the prior year comparative period as the product gained market share in additional markets which include South Africa and the DRC.
At subsidiary Country Choice Foods, sales volumes, which are mainly sugar derivatives, were 23 percent lower than prior year comparative mainly as a result of the continued decline in the currency’s purchasing power as consumers have been appropriating their income to basic food items.
The Properties business maintained its occupancy levels, with collections having been affected as tenants grappled from the slowdown in business as a result of the COVID-19 pandemic.
