Increase in crocodile skins sales boosts Padenga’s revenue

Harare – Crocodile skins and meat producer, Padenga Holdings, revenue for the six months ended June 30, 2018 closed at $9.6 million compared to $2.9 million the prior year buoyed by an increase in sell of crocodile skins.

Profit before tax for the six months under review amounted to $7 747 224 against $4 327 177 in 2017.

“We sold 19 863 skins compared to 5 283 skins in the comparable period in 2017. The harvest of alligator skins in the United States commenced early in line with the change in the production model.

“We harvested 3 593 watchband sized skin alligators and 3 502 medium sized skin alligators in the period under review. In the same period last year, we did not harvest alligators in line with the seasonality of the business. The remaining 12 678 skins were Nile crocodile skins,” said Thembinkosi Sibanda in a statement accompanying the Group’s financial results.

Cash generated by the Group from operating activities increased from $1 222 615 for the six months to June 2017 to $4 484 839 in the period under review.

Sibanda attributed the increase to cash generations to astute working capital management which led to a decrease in debtors and an increase in creditors.

“In the Zimbabwean crocodile operation, a profit before tax of $7 348 530 was recorded compared to 4 995 901 for the prior comparative period. We had 2 552 skins in stock at the end of the period.”

A total of 12 768 skins were graded and sold in the period under review and of the total 2 725 skins were carryover skins from 2017.

Sibanda said construction for an additional 80 new pens is underway and this constitutes part of the initiative to improve skin quality, increase in growth rates, enhanced animal welfare and improve production efficiencies.

The Group closed the period with a total of 135 969 grower crocodiles on the ground compared to 138 067 at the end of June 2017.

Additionally, Sibanda said micro-defects only fully apparent at crust tanning have been detected on some skins and will impact the first-grade quality ratio to be attained from 2018 harvest.

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