Padenga profit jumps 295pc
DIVERSIFIED crocodile breeder, Padenga Holdings Limited’s revenue for the half year to June 30, 2020, jumped 295 percent to US$22,4 million compared to US$5,6 million recorded during the same period in the prior year spurred by the mining business.
Mining operations helped offset low performance recorded during the period in the crocodilian business, which was severely affected by Covid-19 restrictions.
The mining business contributed 61 percent of the total revenue amounting to US$13,7 million from the sale of 344kg of gold while the Zimbabwe crocodile operation accounted for 29 percent of US$6,3 million of total revenue and the Texas operations contributed US$2,3 million or 10 percent.
According to group chairman, Thembinkosi Sibanda, growth in the mining business was driven by improved production volumes and increased gold price resulting in the operation recording a profit before tax of US$7,7 million.
Overall, the group posted a profit before tax of US$9,3 million, a marginal increase from same period last year. Profit for the period rose 17 percent to $8,6 million. Basic earnings per share rose marginally by 6 percent to US1,43 cents.
Total assets closed the year at US$131 million, representing a growth of 28 percent from US$131 million recorded in the same period last year.
During the period under review, cash generated amounted to US$20 million, with the Zimbabwe crocodile operation generating US$4,9 million — an increase that was attributed to the decline in receivables.
The group sold 19 323 skins during the period under review compared to 17 722 skins in the same period in 2019 with foreign operation accounting for 70 percent of the total skin volumes sold.
A total of 13 784 skins were harvested at the Nile Crocodile operations, an increase from the 5 501 skins harvested during the same period last year.
According to Sibanda, a skin sales grading that was scheduled for end of May 2020 was postponed due to Covid-19 lockdown which had a knock on effect on sales volumes for the operation during the period under review.
The alligator operations recorded 13 860 skins sold compared to 11 796 during the comparable period.
Of the total sold, 8 443 were carryover skins which were sold to best advantage.
By end of June 2020, there were 19 808 yearling alligators on the ground and approximately 6 600 of these will be harvested as watchband sized skins beginning of October while 13 200 will be carried forward to 2021 to be harvested as medium sized skins.
Sibanda said the group will continue its focus on premium quality skins for its high end market while watching its costs as well.
“The demand for top quality defect-free skins is steady and prices for these will hold. We remain confident in our strong fundamentals and we will continue to focus on preserving value while managing risks triggered by the volatile external environment,” said Sibanda in a statement accompanying the group financials.