Published: 19 December 2013

Star Africa released a depressed set of results underlined by a 60% decline in the top line from $17.4m to $6.9m. This was mainly attributed to a 44% decrease in sugar production at Gold Star Sugars Harare (GSSH).
Production was hindered by inefficiencies arising from the use of obsolete plant and a three month plant shut down due to civil works that was being carried out in preparation for the plant upgrade.

Cheaper sugar imports flooded the domestic market and negatively impacted sales volumes. Gold Star Sugars Bulawayo remained under care and maintenance during the period under review. Loss before taxation was at $4.1m as finance costs increased by 33% to $2.8m. Loss for the year worsened by 8% to $5.2m.

Star Africa has been facing immense challenges for the past four years, the losses incurred over the last four years have seriously distressed the company. Cost of production continues to be relatively high, consequently cheaper imports are snatching some of the company's local market.
- businessdaily

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