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Harare – Europeans are consuming more of the crocodile meat produced in Zimbabwe, according to Padenga Holdings, a Zimbabwe Stock Exchange-listed company whose sole business is the production and sale of crocodile skins and meat.
It added that cash generated from operations more than doubled to US$13m during its full year to end-December.
Padenga is listed on the Zimbabwe Stock Exchange and has ramped up its shareholding in a Los Angeles alligator operation to 67%, the company said on Thursday. However, it is the stronger demand for crocodile meat that has boosted the company, with turnover from the meat segment jumping by as much as 11%.
Its other operations include crocodile farms in Zimbabwe, mostly at Kariba. The company said it has made provision for the lower water levels anticipated at the giant dam that also supplies Zimbabwe and Zambia with most of the two countries’ hydro-electricity requirements.
“Demand for crocodile meat in Europe firmed during the period. Total meat volumes sold increased by 25% to 290 tonnes from 231 tonnes sold in the prior reporting period. However, the sales mix shifted towards low value cuts,” said Alexander Calder, chairperson of Padenga Holdings.
Padenga boosted its shareholding in the Lone Star Alligator Farms from 50% to 67% in April last year. However, the alligator farming business had posted “disappointing” results in the period under review after turnover declined 55% to $1 742 654.
In order to retain focus on successful alligator farming activities, Padenga has outsourced skinning and processing for the United States alligator business. It has also deferred harvesting some medium-sized animals to 2016 in an attempt to improve the quality of skins from the animals.
Headline earnings per share for the Zimbabwe unit amounted to 1.6 cents for the period, while pre-tax profits firmed 42% to $11.4m. Executives at the company said this was boosted by management of costs and the selling of skins that are appropriate to size requirements from the market.
About 46 000 crocodiles were culled during the period, a 7% jump on prior year culled figures. Additionally, the “the skin quality grade achieved improved from 93% 1st grades attained in 2014 to 96% in the period under review,” Calder said.
Demand for crocodile skins from luxury apparel designers is expected to remain strong despite a weakening global economy. Padenga will also likely capitalise on growing demand for other byproducts such as oils and meat.
Padenga is one of only a few high-flying Zimbabwean companies as the economy is bogged down by persistent economic woes worsened by liquidity constraints and capital shortages.
