Hippo Valley records 16% revenue growth

📅 Published: August 16, 2025

Curated by AllZimNews.com

Hippo Valley said this improvement was achieved through retool ing the agricultural business unit with cane haulage equipment. “Additionally, cane quality improved from an Estimated Recoverable Crystal (the percentage of sucrose in sugarcane that is theoretically recoverable as sugar crystalst of 11. 30 percent to 11. 46 percent.

Despite some minimal mill start-up challenges, the plant had impressive recoveries, after achieving a cane to sugar ratio of 8. 49 against prior year of 8. 50 and target of 8. 75,” added the company. “Private farmers cane deliveries marginally dropped due to diversions to the Triangle mill after the start-up challenges. ”It said the company continued to battle with the high cost of production mainly relating to cane purchases which are currently procured at uncompetitive Division of Proceeds (DOP) arrangements and cane prices.

Hippo Valley said an exorbitantly high minimum wage, outside the range of regional benchmarks and other local agricultural entities also contributed to high cost of production.

The company said: “Inflationary pressures on key inputs which include fertilisers, chemicals and major spares contributed to high cost of production.

In response to these complexities, the business continued to trust that the initiatives coming through Project Zambuko will put the business at the right margin levels and promote the generation of positive cashflows. ”In terms of the local market, Hippo Valley said overall local sales performance improved by 4 percent from prior year with the SunSweet brand registering a 19 percent increase above prior year.

The company, however, said raw sugar performance dampened overall sales growth, falling 32 percent below the first quarter target and 31 percent below prior year. “The decline was primarily due to reduced demand from key off-takers in the beverages manufacturing sector following the introduction of sugar tax,” said Hippo Valley. “Further, some industrial customers continued to import, impacting sales puen more.

However, at most beverage manufacturers turn to local producers for their refined sugar requirements, sugar volumes are expected to recover going forward. ”It said export volumes performed better than prior year on the back of improved opening stock position compared to prior year.

Hippo Valley said with better production runs currently being experienced and hence more stocks, more exports will be realised in the balance of the year.

Looking ahead, the company said: “Business remains hopeful that as the year progresses, current stability of the local currency experienced in the first quarter will be sustained and that access to foreign currency through formal banking channels will improve, enabling the company to procure critical inputs. ”It said the DOP court case remains unresolved after it was heard in the Supreme Court on 12 June 2025 and referred back to the High Court.

Hippo Valley said further updates will be provided as the matter progresses. “With good levels of water available in the supplying dams, the business has adequate irrigation water for the current and next season.

Focus will remain on ensuring adequate water conveyancing capacity is maintained or improved,” added the Hippo Valley. “The company remains focused to deliver set targets in agriculture, milling, sales and distribution and supporting functions, aligning with its sustainability goals.

The business also remains leveraged on its Environmental, Social and Governance (ESG) agenda to ensure the company is positioned for future growth. ”. 🔗

” style=”color: #007bff;”>admin@allzimnews. com.

Get the complete story and stay updated with the latest Zimbabwe news