Ariston : Annual Report 2021

A N N U A L R E P O R T 2 0 2 1

Leading Agro-industrial Company Since 1947.

Leading Agro-industrial Company Since 1947.

Contents

Corporate Structure		02
Financial Highlights		03
Directorate And Administration		04
Chairman's Statement	05 - 06
Group Operational Overview	07	- 08
Report Of The Directors		09
Directors' Responsibility for Financial Reporting	10
Corporate Governance	11 - 13
IndependentAuditor's Report	14 - 20
Statement of Profit or Loss		21
Statements Of Financial Position	22 - 23
Statements Of Changes in Equity	24 - 25
Statement Of Cashflows	26 - 27
Notes to the Financial Statements	28 - 86
Shareholders' Profile	87 - 88
Notice To Members	89 - 90

Corporate Structure

100%	100%	100%	100%	100%	50%
ARISTON	CLAREMONT	SOUTHDOWN	CLEARWATER TEA	ROSCOMMON	CLAREMONT
MANAGEMENT	ORCHARDS 1988	HOLDINGS	MANUFACTURING	DEVELOPMENT	ORCHARDS
(PRIVATE) LIMITED	(PRIVATE) LIMITED	COMPANY (PRIVATE)	COMPANY
SERVICES	HOLDINGS
Agriculture	Property owning	LIMITED	(PRIVATE) LIMITED
(PRIVATE) LIMITED	(PRIVATE) LIMITED
Property owning	Property owning
		company
			company	company

100%

A division of

Ariston Management Services

(Private) Limited

100%

A division of

Ariston Management Services

(Private) Limited

100%

A division of Ariston Management Services (Private) Limited

55% CLAREMONT POWER STATION Joint venture with Goldsaif (Private) Limited

50% MOMBE SHOMA FARMING (PRIVATE) LIMITED Joint venture with Family van Leenhoff

This is a property owning company. During the year, Ariston Holdings disposed 50% of its shareholding to a Netherlands based private company, Tuinbouw Zonder Grenzen B.V. The company is now a Joint Venture in the Group.

This estate was situated in the Nyanga area on the Claremont Orchards Holdings (Private) Limited property. Its unique micro climate made it suitable for horticultural production. During the year, the estate was transformed into a joint venture.

Comprises three estates in the picturesque Chipinge and Chimanimani areas of Zimbabwe with 1,200 hectares of tea, 450 hectares of macadamia nuts, 60 hectares of bananas and 12 hectares of avocados. This division is also involved in the packaging of tea for the domestic market. Infrastructural development includes tea factories, a macadamia drying facility, schools, clinics and workers' housing.

The estate is situated in Norton. It produces irrigated crops and dry land crops, and over one million broilers a year.

A joint venture between Ariston Management Services (Private) Limited and Goldsaif (Private) Limited engaged in electricity generation at the micro-hydro facility located at Claremont Orchards Holdings (Private) Limited.

A joint venture between Ariston Management Services (Private) Limited and Family van Leenhoff engaged in Commercial Cattle ranching at Kent Estate.

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Financial Highlights

For the year ended 30 September 2021

	Inflation Adjusted	Historical Cost
	2021	2020	2021	2020
GROUP SUMMARY (ZWL)
Revenue	1,231,443,337	938,910,329	1,030,219,824	339,581,572
Earnings before interest, tax,
depreciation and amortisation (EBITDA)
excluding fair value adjustments	244,170,166	191,086,277	201,059,769	67,837,467
Finance costs	(42,356,488)	(34,197,524)	(35,886,644)	(14,293,212)
(Loss)/ profit before taxation	(286,009,952)	77,699,460	387,583,621	167,774,322
(Loss)/ profit attributable to shareholders	(19,752,513)	217,018,554	338,749,227	135,850,588
Cash generated from/ (utilised
in) operating activities	97,101,680	301,715,887	(53,071,682)	(132,842,775)
Capital expenditure	(125,999,231)	(121,908,015)	(83,694,405)	(33,491,783)
Cash resources net of short-term borrowings
and short-term lease liabilities	(98,028,061)	16,651,050	(98,028,061)	10,987,236
Total assets employed	2,601,865,974	2,966,764,175	1,262,764,622	708,455,479

ORDINARY SHARE PERFORMANCE
Number of ordinary shares in issue	1,627,395,595	1,627,395,595	1,627,395,595	1,627,395,595
Weighted average number of shares in issue	1,627,395,595	1,627,395,595	1,627,395,595	1,627,395,595
Basic earnings per ordinary share (ZWL dollars)	(0.0121)	0.1334	0.2082	0.0835
Ordinary shareholders' equity per ordinary
share (ZWL dollars)	1.0550	1.0680	0.3170	0.1090
Market price per ordinary share
at year end (ZWL dollars)	3.80	1.37	3.80	1.37

FINANCIAL STATISTICS
Interest cover (times)	(5.75)	3.27	11.80	12.74
Ordinary shareholders' equity to total assets (%)	66.01	58.56	40.87	25.04
Return on shareholders equity (%)	(1.15)	12.49	65.63	76.58

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