US unit drags Padenga H1 PAT down 50pct

US unit drags Padenga H1 PAT down 50pct

HARARE, September 9 (The Source) – Padenga Holdings on Friday reported a 50 percent percent decline in after tax profit to $2 million compared to $3 million last year, weighed down by a poor performance of its alligator operation in Texas, United States.

Padenga’s operations include Nile Crocodile Farms in Zimbabwe and the US-based Lone Star Alligator Farms.

Overall the group’s revenue was up from $4,3 million last year to $6,1 million driven by an increase in sales.

The group sold 20,978 skins compared to 9,143 skins in the same period. Of that total 12,053 were alligator skins.

“The operation (alligator) recorded a loss before tax of $1 million compared to a profit of before tax of $382 000. This is largely due to the fact that the 12,053 skins sold were of poor quality due due to the damage caused by disturbances reported on last year. Prices will remain depressed for the rest of the year as we clear out damaged stock,” said board chair Kenneth Calder in statement accompanying results.

“For the alligator business the effects of disturbances to production which occured in 2015 will continue to impact the current year. The unit will therefore post a loss once again”

Padenga , which provides French based luxury bag maker Hermes with alligator and crocodile skins, last year came under the spotlight with animal rights activists claiming the animals were not always treated or slaughtered humanely- development which resulted in production disruptions.

Calder said the Zimbabwean operation is expected to meet financial targets in the full year.

Operating costs during the half year period were up from $6,8 million to $9,1 million while cash utilised by the group for operating activities increased from $598,000 to $1,5 million in the period under review. This was necessitated by a decision to increase critical inputs the company reported.