Ariston Holdings Limited Reports Tea Exports Surge 21%, Prices Up 6%, Despite Local Dip

Published On: January 4, 2024Company: Ariston Holdings Limited (
What was the major change in Ariston's operating practices that led to cost savings?
Ariston has consolidated its tea production and invested in a solar plant to mitigate power outages. These measures were essential in reducing operational costs and achieving more predictability in factory processes.


  • The financial year experienced a dry spell followed by substantial rains, which was more than the previous year. The operating environment, however, remained challenging due to disruptions from the global markets, COVID-affected agricultural commodity prices, and other local economic challenges.
  • Ariston Holdings Limited reported an increase in revenue by 15% to ZWL35.479 billion for the financial year ending 30 September 2023. Despite the falling price of macadamia nuts, this increase was largely due to the price rise in tea, driven by an improvement in quality.
  • The company saw a Gross Loss this year due to changes in reporting the costs of sales. This was because of the effects of fair values on biological assets harvested by year-end, which were formerly included in the cost of sales.
  • The joint ventures had a positive impact, and the share of profits rose by 169%. Still, the increasing borrowing led to a rise in inflation-adjusted interest expenses by 99%.
  • Ariston posted a loss of ZWL 33 billion as opposed to a profit of ZWL 5.9 billion the preceding year. The key reason was the unrealized exchange losses resulting from the liabilities denominated in US dollars.
  • The company observed an upgrade in its buildings, leasehold, plant, and machinery, which led to a recognized revaluation surplus of ZWL26.5 billion.
  • Tea production was consolidated, introducing cost savings and process predictability. Despite a decline in tea volume, the average selling price saw a substantial increase, leading to an overall revenue increase in USD terms.
  • Macadamia production volumes saw an improvement, although the selling price declined by 40% because of oversupply in the market due to COVID-19.
  • In other products, the contribution to the group’s turnover saw a significant rise, mainly due to the diversification of product offerings.
  • The most significant investment for the period was in a solar plant. It aimed to create financial savings and align with the company’s environmental preservation strategy
  • The company predicts lower rainfall for the next season, and the production sites should mostly depend on their irrigation system. However, the company anticipates better tea and macadamia yields for the year.
  • The Board decided not to declare a dividend to conserve cash resources and enhance assets.

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About Ariston Holdings Limited (

Ariston Holdings Limited, listed on the Zimbabwe Stock Exchange, is an agricultural enterprise operating in diverse markets that range from tea, macadamia nuts, horticulture and deciduous fruits to fish farming, beef cattle and poultry. Ariston Holdings Limited has a national footprint, with five strategic business units located in the northern and eastern regions of Zimbabwe. Southdown Estates consists of three estates with over 1 200 hectares allocated to tea plants, almost 60 hectares to bananas, over 450 hectares to macadamia trees and 12 hectares of avocados. Claremont Estate concentrates on growing pome and stone fruit, passion fruit and potatoes; while Kent Estate focuses on horticultural crops, poultry and livestock. The company also packages and distributes blended tea for the domestic market.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.


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