Starafricacorporation Limited Reports 93% Reduction in Operating Profit Despite 30% Increase in Turnover

Published On: September 8, 2023Company: starafricacorporation Limited (
What was the key operational challenge faced by starafricacorporation Limited during the year under review?
The key operational challenge was a 93% reduction in operating profit due to an increase in raw sugar prices and operating costs, despite a 30% rise in turnover. Also, sales volumes of granulated sugar remained stagnant as production volumes reduced by 6% due to pressure from imports, raw sugar shortages, and power outages.


  • The year was marked by rising inflation and exchange rate fluctuations. Moreover, the economy suffered heightened uncertainty emanating from the Russia-Ukraine conflict.
  • Inflation increased to double-digit figures from June 2022 but tight fiscal and monetary policies brought some semblance of stability.
  • The government relaxed several COVID-19-related restrictions considering the declining rates of infections and fatalities.
  • Starafricacorporation Limited recorded a 30% increase in turnover from ZWL38.5billion in the prior year to ZWL50.1billion, but there was a 93% reduction in operating profit due to increases in raw sugar prices and operating costs.
  • In historiacal terms, revenue increased by 317%, while operating profit increased by 26%.
  • Sales volumes of granulated sugar remained stagnant, with production volumes reducing by 6% due to pressure from imports, raw sugar shortages, and power outages.
  • The company’s product, Country Choice Foods, continued to dominate the market. Sales volumes increased by 9% thanks to competitive pricing.
  • The company did not declare a dividend for the year ended 31 March 2023 due to a volatile operating environment.
  • The company predicts that Zimbabwe’s operating environment will remain challenging due to ongoing inflationary pressures. Nonetheless, the company expects more market stability if the current tight monetary and fiscal policies are maintained.

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About starafricacorporation Limited (

starafricacorporation Limited is an established sugar refinery in Zimbabwe; manufacturing and marketing sugar-based products under two well-known brand names, Goldstar Sugar and Country Choice Foods. Its product range comprises icing sugar, golden syrup, honey syrup and maple syrup. There are only two sugar mills in Zimbabwe and both are owned by Starafrica Corporation; producing products for local consumption and for export to countries in sub-Sahara Africa. Its subsidiary companies are Starafrica Operations (Private) Limited and Silver Star Properties (Private) Limited which is a property division involved in managing commercial, manufacturing and residential premises in Zimbabwe. starafricacorporation Limited is listed on the Zimbabwe Stock Exchange

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