Star Africa Corporation Limited reported mixed results for the year ended 31 March 2025, as revenue grew strongly but bottom-line performance slipped into a loss.
Group revenue rose by 22% to ZWG$1.71 billion, up from ZWG$1.41 billion in 2024, largely driven by increased sales at Goldstar Sugars and Country Choice Foods.
“Our financial performance reflects both the year’s opportunities and its challenges. Group revenue increased by 22%, rising to ZWG$1,710.2 million from ZWG$1,405.8 million in the prior year.
This growth was primarily driven by increased sales volumes at our Goldstar Sugars and Country Choice Foods divisions,” said Chairman Rungano Mbire.
Goldstar Sugars achieved a 7% growth in sales volumes, reaching 59,613 tonnes, while Country Choice Foods rose 14% to 1,416 tonnes. Quality Chain Packs, the company’s bulk beverage packaging division, also posted robust growth in sales volumes, with management citing product innovation and expansion into B2C and online sales channels.
Gross profit stood at ZWG$339.7 million, reflecting the benefits of cost optimisation and value chain collaboration.
However, subdued consumer demand, tight liquidity, and reduced disposable incomes weighed heavily on profitability.
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The group’s operating loss narrowed to ZWG$79.8 million from ZWG $501.5 million a year earlier, but finance costs of ZWG 44.6 million dragged results into a net loss of ZWG$129.4 million, compared to a profit of ZWG$82.5 million in 2024.
On the balance sheet, net assets were marginally higher at ZWG$397.9 million, up 2% from ZWG 389 million, while property, plant, and equipment grew to ZWG$377.8 million, underscoring continued investment.
Under historical cost reporting, revenue surged 686% to ZWG$1.18 trillion, and profit ballooned 874% to ZWG$36.4 billion, highlighting the distortions caused by Zimbabwe’s hyperinflationary environment.
The board declared an ordinary dividend of 50 ZWL cents per share but resolved against an additional payout given the financial results.
Mbire expressed cautious optimism: “Encouraged by the macroeconomic stability that emerged in the latter half of the year, this continued set of favorable policies and operating environment should provide further impetus for stronger business performance, though global supply chain issues and price volatility remain concerns.
"Focus remains on harnessing these policies for business growth in the coming year.”
He added that while “top-tier” remains a benchmark, the group will continue to recalibrate, leveraging the Zimbabwe Stock Exchange platform while prioritising innovation, efficiency, and sustainability.
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