Ariston Holdings Limited has reported a steep 58% decline in group revenue for the first quarter ended 31 December 2025, with the agricultural firm citing severe weather disruptions, working capital constraints and a difficult domestic economic environment as key drivers of the downturn.

According to the company’s latest trading update, the period under review marked a “challenging first quarter marked by variable weather and a tough domestic economic environment,” which significantly disrupted production across its core operations.

Tea production was among the hardest hit segments, falling sharply to 111 tonnes — a 77% drop from 496 tonnes recorded in the prior comparative period. The company also recorded a 67% decline in tea sales volumes, which dropped to 125 tonnes.

Macadamia operations also came under pressure, with sales volumes declining by 19% year-on-year. However, management noted that the outlook for the crop remains positive going into the main harvest season.

“The main harvest, which commences in March, shows promising nut set, and global demand remains firm,” the company said, signalling cautious optimism for a recovery in the coming quarters.

In a strategic operational adjustment, Ariston suspended poultry placements during the quarter to facilitate upgrades to its poultry house heating systems. Despite the overall downturn, the ‘Other Products’ category — which includes bananas — registered an 8% increase in volumes and contributed 18% to group revenue.

The company attributed part of its performance challenges to financing and operational constraints, noting that “working capital constraints delayed certain critical farming activities, which had a direct impact on tea production volumes for the quarter.”

The operating environment remained under strain, with Ariston highlighting persistent economic headwinds in Zimbabwe, including rising input costs and liquidity challenges.

“Climatic conditions: The quarter began with early summer heat followed by heavy rainfall, which temporarily disrupted harvesting activities for tea and macadamia,” the update noted.

Currency issues also weighed on operations, with the group pointing to continued constraints associated with the Zimbabwe Gold currency, which it said continue to affect broader liquidity management and economic activity.

Despite the subdued quarter, management struck an optimistic tone, outlining ongoing strategic interventions aimed at stabilising and strengthening the business. These include the acquisition of new plucking machines expected to boost tea harvesting capacity from the second quarter, as well as expansion of solar energy infrastructure to improve cost efficiency and operational reliability.

“The Board of Ariston Holdings remains confident that operational initiatives are beginning to stabilise the business and will support stronger future performance,” the company said.

It added that it is actively pursuing forward contracts in its macadamia segment to improve revenue visibility, noting that global prices for the crop are trending higher than the previous year.

Ariston said it will continue focusing on “operational efficiency, cost optimisation, and expanding revenue streams” as it works to navigate the current macroeconomic pressures.

The company is currently trading at 4.00 ZWG cents, reflecting a flat performance on the Zimbabwe Stock Exchange.

Indicative liquidity for the counter stood at US$53.54K over the past 12 months, averaging US$4.46K per month.