Ariston : June 15, 20222022 HY Financials & Audit Review

R E V I E W E D

F I N A N C I A L R E S U L T S

FOR THE SIX MONTHS ENDED 31 MARCH 2022

Registered Office: 18 Coghlan Road, Harare, Zimbabwe, P.O. Box 4019,

Financial Highlights

		INFLATION ADJUSTED	HISTORIC COST
		Half Year	6 Months-	Half Year	6 Months-
		Ended	to-6 Months	Ended	to-6 Months
	All figures in ZWL	31-Mar-22	change	31-Mar-22	change
	REVENUE	634,883,229	-14%	560,574,068	41%
	PROFIT AFTER TAXATION	103,246,908	111%	265,130,342	24%
	BASIC EARNINGS PER SHARE (ZWL)	0.0634	111%	0.1629	24%
	HEADLINE EARNINGS PER SHARE (ZWL)	0.0462	53%	0.1478	12%

ARISTON 1908

CHAIRMAN'S STATEMENT

OPERATING ENVIRONMENT & OVERVIEW

The general macro-economic environment saw a resurgence in inflation levels and renewed exchange rate volatility. The Group remains hopeful that progressive and consistent policies will be employed to eliminate the current market disparities which have the effect of adversely affecting exporting companies the most.

The trading environment has deteriorated in the current period to 31 March 2022. Disposable incomes continued to be eroded.

The agricultural season was characterised by late rains which only commenced in earnest in December 2021. Thereafter the rains were erratic and in total all Estates received less rain in this period than in the prior year's comparative period. However, whilst the rains were late, the weather conditions were cooler than in the prior comparative period. The cooler temperatures resulted in a positive impact on quality of teas and better nut-set in macadamia. Accordingly, production volumes and quality showed an improvement in the period under review.

Crops under irrigation at Kent were unaffected by the late rains. Dryland planting at Kent Estate could only be completed in late December 2021 as a result of lower and delayed rainfall in current period.

During the period a number of projects were completed using some of the proceeds from the partial disposal of Claremont Orchards Holdings. The projects included the expansion of macadamia orchards and the macadamia drying facility, additional tea making equipment so as to increase the local tea production capacity, and installation of various equipment designed to automate some of the in-field production processes so as to release labour to harvesting processes. These were successful and have enabled the Group to harvest greater volumes of tea in the current year than historically as the Group continues in its focus to counteract the effects of shortage of labour in Chipinge and Chimanimani.

FINANCIAL PERFORMANCE (on inflation adjusted terms)

During the 1st quarter of the year, the Group received proceeds from the disposal of 50% of its shareholding in Claremont Orchards Holdings (Private) Limited to Tuinbouw Zonder Grenzen BV (TZG). As a consequence of this transaction, the fruit category is not included in the Group's revenue for the current period. This, coupled with decline in tea sales has resulted in a 14% decline in revenue for the half year ended 31 March 2022 compared to prior period. The widening of the exchange rate gap between the interbank auction rate at which the Group's export revenue was retained and the parallel exchange rate that suppliers are charging for locally purchased goods continued to put substantial pressure on costs due to mismatch in the two rates. This resulted in a 57% increase in cost of sales. Gross profit margin declined to 34% compared to 63% in the prior comparative period.

Loss from operations was 22% of revenue compared to a profit from operations at 19% of revenue in the prior comparative period. The Group realised an inflation adjusted profit before interest and tax of ZWL94 million, compared to ZWL204 million in the prior comparative period. This was after taking into account fair value adjustments, exchange differences, share of profit from investments in joint ventures and the monetary loss. Inflation adjusted interest expense declined by 1% to ZWL21.5 million in the current reporting period. Overall the Group posted an inflation adjusted profit after tax of ZWL103 million, which is a 111% improvement on prior comparative period's ZWL49 million.

VOLUMES AND OPERATIONS

Tea

Production volumes had a marginal increase of 0.2% at 2,028 tonnes compared to 2,023 tonnes in the prior comparative period.

Export tea sales volumes suffered a 22% decline to 511 tonnes, while average selling price improved by 8% against prior period. There was a slow uptake of export teas in the first quarter of the year due to the effects of the COVID-19 pandemic on shipping logistics and costs. However, demand started improving in early March 2022.

Local tea sales volumes declined by 10% to 735 tonnes whilst the Local tea average selling price increased by 21%.

Macadamia

36% of the projected annual crop had been produced as at end of current half-year, compared to 32% in prior period. As at half year, macadamia production volumes were 4% above the prior comparative period. Export sales volumes were 47% ahead of the prior comparative period due to sale of some prior year macadamia stocks at the start of the current year. This resulted in the reflected sales volume increase compared to prior comparative period.

Pricing reflected a 16% decline against the same period in prior comparative period. The macadamia kernel prices have not changed much. However, the macadamia nut-in-shell prices have been under pressure due to the effects of COVID-19 induced lockdowns in China. This could be a temporary feature which may reverse once China is back to full production, however until then, we have witnessed a contraction in macadamia nut shell prices.

Other products

Other products comprise potatoes, soya beans, seed maize, commercial maize, seed sugar beans, avocado, bananas and poultry. These contributed 27% of revenue compared to 17% in prior period showing that this category continues to grow and contribute positively to the Group's profitability.

INVESTMENTS

The Group holds investments in joint ventures which make up 9% of the Group's total assets. The joint ventures consisting of Claremont PowerStation, Mombe Shoma Cattle ranching and Claremont Orchards Holdings Limited have continued to contribute positively to the Group's performance.

OUTLOOK

The Group's activities are cyclical in nature with the majority of harvesting and selling operations occurring in the second half of the year. However, to date, indications are that the Group will have higher yields than prior year, a softening in the export price of macadamia nuts but improvement in export tea price. The continued effect of the COVID-19 pandemic on global supply chain coupled with the effect of the war between Russia and Ukraine will have a negative impact on the speed and cost of logistics resulting in increased input costs. So far, the Group has noted the significant increase in cost of fertiliser which is the Group's most significant single cost.

The environment continues to be challenging but the Group believes that it is well positioned to continue improving its performance.

DIVIDEND

In view of the need to enhance assets and the need to preserve cash resources, the Board has seen it prudent not to declare a dividend.

DIRECTORATE

There have been no changes in the directorate in the period under review.

APPRECIATION

I would like to extend my appreciation to all our customers, suppliers, staff, shareholders, strategic partners and my fellow Board directors for the continued support for their business.

BY ORDER OF THE BOARD

ALEXANDER CRISPEN JONGWE

CHAIRMAN

15 June 2022

Condensed Group Statement of Profit or Loss and Other Comprehensive Income

		Inflation Adjusted	*Historical
		Reviewed	Reviewed
		Half Year	Half Year	Half Year	Half Year
		Ended	Ended	Ended	Ended
		31-Mar-22	31-Mar-21	31-Mar-22	31-Mar-21
All figures in ZWL	Notes	ZWL'000	ZWL'000	ZWL'000	ZWL'000
Revenue	8	634,883	734,871	560,574	397,734
Cost of production		(419,968)	(268,254)	(319,151)	(124,685)
Gross profit		214,915	466,617	241,424	273,049
Other operating income		31,686	6,312	27,927	3,378
Operating expenses		(385,097)	(336,745)	(293,177)	(156,953)
(Loss)/ Profit from operations		(138,496)	136,184	(23,827)	119,474
Fair value adjustments		317,523	162,938	459,515	190,863
Exchange differences		(104,935)	(13,673)	(115,865)	(7,894)
Monetary loss		(2,519)	(90,537)	-	-	1969
Share of net profit of a joint ventures accounted for using
the equity method		22,668	8,735	29,361	4,954	AHL
Profit before interest and taxation		94,241	203,647	349,184	307,397
Finance costs		(21,509)	(21,708)	(19,212)	(11,612)
Profit before taxation		72,732	181,939	329,972	295,785
Income tax benefit/ (expense)	2	30,516	(133,011)	(64,841)	(81,491)
Profit for the year		103,248	48,928	265,131	214,294
Other comprehensive income		-	-	-	-
Total comprehensive income before tax on
comprehensive income		103,248	48,928	265,131	214,294
Tax on other comprehensive income		-	-	-	-
Total comprehensive income for the year		103,248	48,928	265,131	214,294
Number of shares in issue ('000)		1,627,396	1,627,396	1,627,396	1,627,396
Weighted average number of shares in issue ('000)		1,627,396	1,627,396	1,627,396	1,627,396
Earnings per share (dollars)
Basic earnings per share		0.0634	0.0301	0.1629	0.1317
Diluted earnings per share		0.0634	0.0301	0.1629	0.1317

* Historical amounts have been presented as supplementary information and were not subject to an audit or review.

Condensed Group Statement of Financial Position

		Inflation Adjusted			*Historical
		Reviewed	Reviewed	Audited
		as at	as at	as at	As at	As at	As at
		31-Mar-22	31-Mar-21	30-Sep-21	31-Mar-22	31-Mar-21	30-Sep-21
All figures in ZWL	Notes	ZWL'000	ZWL'000	ZWL'000	ZWL'000	ZWL'000	ZWL'000
ASSETS
Non - current assets
Property, plant and equipment		1,932,597	2,619,351	1,972,246	211,968	105,447	129,692
Biological assets		11,543	11,869	10,047	11,543	6,873	7,045
Right of use assets		29,079	41,533	35,306	562	859	710
Investment in joint ventures	5	312,820	108,332	290,152	182,359	36,103	152,998
		2,286,039	2,781,085	2,307,751	406,432	149,282	290,445
Current assets
Biological assets		781,197	959,486	465,170	781,197	555,595	326,180
Inventories		329,705	407,112	244,163	314,306	213,592	162,284
Trade and other receivables		120,464	393,030	682,252	116,264	224,222	475,988
Cash and cash equivalents		4,764	141,429	11,217	4,764	81,895	7,867
		1,236,130	1,901,057	1,402,802	1,216,531	1,075,304	972,319
TOTAL ASSETS		3,522,169	4,682,142	3,710,553	1,622,963	1,224,586	1,262,764
EQUITY
Share capital and reserves
Share capital		120,996	120,996	120,996	1,627	1,627	1,627
Share premium		812,065	812,065	812,065	10,922	10,922	10,922
Distributable reserves		1,525,315	1,593,553	1,516,457	674,333	379,139	503,592
		2,458,376	2,526,614	2,449,518	686,882	391,688	516,141
LIABILITIES
Non-current liabilities
Borrowings	7	19,206	403,977	353,451	19,206	233,925	247,842
Deferred tax		274,490	852,512	305,006	146,894	139,099	82,053
Lease liabilities		-	77	-	-	45	-
		293,696	1,256,566	658,457	166,100	373,069	329,895
Current liabilities
Trade and other payables	6	576,993	719,077	451,561	576,877	355,666	310,834
Borrowings	7	183,746	179,433	150,736	183,746	103,901	105,697
Lease liabilities		9,358	452	281	9,358	262	197
		770,097	898,962	602,578	769,981	459,829	416,728
TOTAL EQUITY AND LIABILITIES		3,522,169	4,682,142	3,710,553	1,622,963	1,224,586	1,262,764

* Historical amounts have been presented as supplementary information and were not subject to an audit or review.

Condensed Group Statement of Cashflows

	Inflation Adjusted	*Historical
	Reviewed	Reviewed
	Half Year	Half Year	Half Year	Half Year
	Ended	Ended	Ended	Ended
	31-Mar-22	31-Mar-21	31-Mar-22	31-Mar-21
All figures in ZWL	ZWL'000	ZWL'000	ZWL'000	ZWL'000
Cash flows from operating activities
(Loss)/ profit before taxation	72,732	181,939	329,972	295,785
Change in working capital	72,158	90,277	(55,777)	(95,442)
Non-cash items	(179,798)	(127,146)	(473,450)	(207,001)
Cash generated from/(utilised in) operating activities	(34,908)	145,070	(199,255)	(6,658)
Cash flows from investing activities
Cash utilised in investing activities	(114,800)	(135,428)	(97,764)	(40,459)
Cash generated from investing activities	529,804	746	529,732	432
Cash utilised in investing activities	415,004	(134,682)	431,968	(40,027)
Cash flows from financing activities
Cash utilised in financing activities	(386,549)	-	(235,816)	-
Cash generated from financing activities	-	92,328	-	110,668
Cash generated/ (utilised in) from financing activities	(386,549)	92,328	(235,816)	110,668
Net (decrease)/ increase in cash and cash equivalents	(6,453)	102,716	(3,103)	63,983
Cash and cash equivalents at beginning of the year	11,217	38,713	7,867	17,912
Cash and cash equivalents at the end of the year	4,764	141,429	4,764	81,895

* Historical amounts have been presented as supplementary information and were not subject to an audit or review.

Directors: Mr. A.C. Jongwe (Chairman), Mr. P.T. Spear* (Chief Executive Officer), Mr. I. Chagonda, Mr. C.P. Conradie, Mrs.T.C. Mazingi, Mr. J.W. Riekert. * Executive

Registered Office: 18 Coghlan Road, Harare, Zimbabwe, P.O. Box 4019,

R E V I E W E D F I N A N C I A L R E S U LT S FOR THE SIX MONTHS ENDED 31 MARCH 2022

Condensed Group Statement of Changes in Equity

		Inflation Adjusted
		Share	Distributable
	Share Capital	Premium	Reserves	Total
All figures in ZWL	ZWL'000	ZWL'000	ZWL'000	ZWL'000
Balance as at 30 September 2020	120,996	812,065	1,544,625	2,477,686
Total comprehensive income for the period	-	-	48,928	48,928
Balance as at 31 March 2021	120,996	812,065	1,593,553	2,526,614
Total comprehensive income for the period	-	-	(77,096)	(77,096)
Balance as at 30 September 2021	120,996	812,065	1,516,457	2,449,518
Dividends declared for the 2021 financial year	-	-	(94,390)	(94,390)
Total comprehensive income for the period	-	-	103,248	103,248
Balance as at 31 March 2022	120,996	812,065	1,525,315	2,458,376
		*Historical
All figures in ZWL		Share	Distributable
Share Capital	Premium	Reserves	Total
	ZWL'000	ZWL'000	ZWL'000	ZWL'000
Balance as at 30 September 2020	1,627	10,922	164,845	177,394
Total comprehensive income for the period	-	-	214,294	214,294
Balance as at 31 March 2021	1,627	10,922	379,139	391,688
Total comprehensive income for the period	-	-	124,453	124,453
Balance as at 30 September 2021	1,627	10,922	503,592	516,141
Dividends declared for the 2021 financial year	-	-	(94,390)	(94,390)
Total comprehensive income for the period	-	-	265,131	265,131
Balance as at 31 March 2022	1,627	10,922	674,333	686,882

* Historical amounts have been presented as supplementary information and were not subject to an audit or review.

Condensed Notes and Supplementary Information

	Inflation Adjusted	*Historical
	Reviewed	Reviewed
	Half Year	Half Year	Half Year	Half Year
	Ended	Ended	Ended	Ended
	31-Mar-22	31-Mar-21	31-Mar-22	31-Mar-21
All figures in ZWL	ZWL'000	ZWL'000	ZWL'000	ZWL'000

• Depreciation and amortisation
  Depreciation of property, plant and equipment excluding bearer

plants	44,466	49,058	4,863	2,190
Depreciation of bearer plants	18,791	13,180	253	340
Depreciation of right of use assets	6,227	6,227	149	149
	69,484	68,465	5,265	2,679
2 Income tax (benefit)/ expense
Current tax	-	-	-	-
Deferred tax	(30,516)	133,011	64,841	81,491
	(30,516)	133,011	64,841	81,491

• Capital expenditure for the period
  Purchase of property plant and equipment excluding bearer

plants	108,540	131,669	92,403	38,533
Capital expenditure incurred on bearer plants	6,260	3,759	5,361	1,926
	114,800	135,428	97,764	40,459
4 Commitments for capital expenditure
Authorised by directors but not contracted	107,348	101,978	107,348	59,051
	107,348	101,978	107,348	59,051

The capital expenditure will be financed out of the Group's own resources and existing facilities.

		Inflation Adjusted	*Historical
		Reviewed
		Half Year	Audited	Half Year
		Ended	Year Ended	Ended	Year Ended
	All figures in ZWL	31-Mar-22	30-Sep-21	31-Mar-22	30-Sep-21
	ZWL'000	ZWL'000	ZWL'000	ZWL'000
5. Investment in joint ventures
Beginning of the period	290,152	55,398	152,998	5,555
Addition	-	45,197	-	25,593
Fair value of retained investment	-	173,638	-	111,589
Share of profit for the period	22,668	15,919	29,361	10,261
End of the period	312,820	290,152	182,359	152,998
		Inflation Adjusted	*Historical
		Reviewed	Reviewed
		Half Year	Half Year	Half Year	Half Year
		Ended	Ended	Ended	Ended
		31-Mar-22	31-Mar-21	31-Mar-22	31-Mar-21
		ZWL'000	ZWL'000	ZWL'000	ZWL'000
6 Trade and other payables
	Trade payables	270,050	278,273	270,050	161,135
	Contract liabilities	121,618	348,154	121,499	141,859
	Dividends declared for the 2021 financial year	94,390	-	94,390	-
	Other payables*	90,935	92,650	90,938	52,672
		576,993	719,077	576,877	355,666
	*Other payables include provisions and statutory liabilities
7 Borrowings
	At amortised cost
	Loans from banks	142,424	152,018	142,424	88,026
	Bank overdrafts	41,322	34,162	41,322	19,782
	Loans from related parties	128,872	397,230	128,872	230,018
		312,618	583,410	312,618	337,826
	Long-term	19,206	403,977	19,206	233,925
	Short-term	183,746	179,433	183,746	103,901
		202,952	583,410	202,952	337,826

1. Bank loans of ZWL 142,423,700 (2021: ZWL 152,017,235) (inflation-adjusted) are secured by an assignment of export receivables between Ariston Management Services and 2 customers and an act of surety signed for the full amount of exposure.
   The average effective interest rate on bank loans approximates 8.5% (2021: 8.5%) per annum.
2. Bank overdrafts are repayable on demand. Overdrafts of ZWL 41,322,130 (2021: ZWL 34,161,979) (inflation-adjusted) have been
   secured by joint and several guarantees. The average effective interest rate on bank overdrafts approximates 50% (2021: 12% to 40% ) per annum.
3. Loans repayable to related parties of the Group are secured by inventories and a mortgage bond over Kent Estate and carry interest of 6% (2021: 6%) per annum charged on the outstanding loan balances. The loans are not payable on demand, they are due at the end of the loan agreement.
4. Lease liabilities are effectively secured as the rights to the leased assets recognised in the financial statements revert to the lessor in the event of default.

The Group did not have any debt covenants
8. Reportable segments
		Inflation Adjusted	*Historical
		Reviewed	Reviewed
		Half Year	Half Year	Half Year	Half Year
		Ended	Ended	Ended	Ended
		31-Mar-22	31-Mar-21	31-Mar-22	31-Mar-21
	Revenue from major products	ZWL'000	ZWL'000	ZWL'000	ZWL'000
	Tea	328,374	354,184	292,584	188,261
	Macadamia nuts	138,106	119,222	126,672	68,587
	Vegetables and fruits	39,851	175,317	33,934	93,906
	Poultry	113,319	61,742	95,471	33,971
	Other	15,233	24,406	11,913	13,009
	Total	634,883	734,871	560,574	397,734

All revenue is recognised at a point in time

Condensed Notes and Supplementary Information (Continued)

8. Reportable segments (Continued)

			Inflation Adjusted
					Adjustments
	Southdown	Claremont	Kent	Corporate	&
	Estates	Estate	Estate	Office	Eliminations	Total
All figures in ZWL	ZWL'000	ZWL'000	ZWL'000	ZWL'000	ZWL'000	ZWL'000
31-Mar-22
Segment revenue	483,107	2,994	148,782	-	-	634,883
Segment EBITDA (excluding fair value
adjustments)	14,468,029	(2,859,118)	2,467,407	(14,230,115)	-	(153,797)
Segment depreciation and impairment	48,353	2,439	7,087	11,605	-	69,484
Segment assets (excluding
intersegment assets)	2,609,348	52,656	363,126	497,039	-	3,522,169
Segment liabilities (excluding
intersegment liabilities)	(367,433)	(12,794)	(30,125)	(335,357)	(318,085)	(1,063,794)
Net segment assets/ (liabilities)	(92,306)	(55,849)	(28,715)	176,870	-	-
31-Mar-21
Segment revenue	491,962	107,705	135,204	-	-	734,871
Segment EBITDA (excluding fair value
adjustments)	3,731,359	(1,255,659)	(92,251)	(2,258,608)	-	124,841
Segment depreciation and impairment	36,565	9,924	6,637	15,339	-	68,465
Segment assets (excluding
intersegment assets)	2,888,667	694,732	439,239	659,504	-	4,682,142
Segment liabilities (excluding
intersegment liabilities)	(547,539)	(46,608)	(47,864)	(648,402)	(865,115)	(2,155,528)
Net segment assets/ (liabilities)	104,616	(57,938)	(21,202)	(25,476)	-	-
			*Historical
					Adjustments
	Southdown	Claremont	Kent	Corporate	&
	Estates	Estate	Estate	Office	Eliminations	Total
All figures in ZWL	ZWL'000	ZWL'000	ZWL'000	ZWL'000	ZWL'000	ZWL'000
31-Mar-22
Segment revenue	432,279	2,234	126,061	-	-	560,574
Segment EBITDA (excluding fair value
adjustments)	(36,081)	24,809	(33,632)	(60,163)	-	(105,067)
Segment depreciation and impairment	3,944	348	637	336	-	5,265
Segment assets (excluding
intersegment assets)	1,198,148	51,767	174,029	199,019	-	1,622,963
Segment liabilities (excluding
intersegment liabilities)	(350,124)	(12,794)	(30,125)	(335,357)	(207,680)	(936,080)
Net segment assets/ (liabilities)	(92,306)	(55,849)	(28,715)	176,870	-	-
31-Mar-21
Segment revenue	266,941	57,731	73,062	-	-	397,734
Segment EBITDA (excluding fair value
adjustments)	82,781	32,204	2,813	1,415	-	119,213
Segment depreciation and impairment	1,565	553	263	298	-	2,679
Segment assets (excluding
intersegment assets)	514,291	345,159	131,840	233,296	-	1,224,586
Segment liabilities (excluding
intersegment liabilities)	(257,314)	(26,989)	(27,716)	(375,460)	(145,418)	(832,897)
Net segment assets/ (liabilities)	60,578	(33,549)	(12,277)	(14,752)	-	-

1. * Historical amounts have been presented as supplementary information and were not subject to an audit or review.

2. Currency of reporting
   The Group's consolidated and condensed financial statements are presented in Zimbabwe Dollars (ZWL) which is the functional currency of all its components.
3. Statement of compliance
   The Group's consolidated financial statements which are summarised by these Group financial results have been prepared in compliance with International Accounting Standard (IAS) 34 Interim Financial Reporting promulgated by the International Accounting Standards Board (IASB), as well as the requirements of the Companies and Other Business Entities Act (Chapter 24:31), the Zimbabwe Stock Exchange rules and the relevant Statutory Instruments.
4. Basis of preparation
   The financial results have been prepared based on statutory records which are maintained on a historical cost basis except for certain biological assets and financial instruments that are measured at fair value, and have been adjusted to fully comply with IFRS; these adjustments include restatements of financial information to reflect the effects of the application of International Accounting Standard (IAS) 29 "Financial Reporting in Hyperinflationary Economies" as more fully described on Note 12 below.
5. Hyperinflation
   On 11 October 2019, the Public Accountants and Auditors Board (PAAB) announced that the requisite economic factors and characteristics necessary for the application of IAS 29 in Zimbabwe had been met. This pronouncement applies to reporting for financial periods ending on or after 1 July 2019.
   Historical cost basis have been restated to comply with IAS 29 which requires that financial results be prepared and presented in terms of the measuring unit current at the reporting date, with comparative information being restated in the same manner. The restatements to cater for the changes in the General Purchasing Power of the Zimbabwean Dollar (ZWL) are based on indices and conversion factors derived from the Consumer Price Index (CPI) compiled by the Zimbabwe National Statistics Agency.
   Judgement has been used in some of the assumptions including CPIs for some previous years due to limitation of available data.
   Key CPIs and conversion factors used are shown below:

Month	CPI	Conversion Factor
March 2022	4,766.10	1.00
Average CPI (October 2021 to March 2022)	4,122.22	1.17
September 2021	3,342.02	1.43
March 2021	2,759.83	1.73

1. Accounting policies
   The Group has adopted all the new and revised accounting pronouncements applicable for the period ending 31 March 2022 as issued by the International Accounting Standards Board (IASB). The accounting policies adopted in the preparation of the consolidated financial statements as at 30 September 2021 have been consistently applied in these Group financial results. This interim financial report is to be read in conjunction with the 30 September 2021 annual report.
2. Going concern
   The Directors of the Group have continued to review the financial impact of the effects of COVID-19 and the related global lockdown orders on the business . The Directors have also assessed the impact of the war between Russia and Ukraine on the business which has had a negative impact on the Group's cost of production and pricing. They have also performed an overall assessment of the ability of the Group to continue operating as a going concern by reviewing the prospects of the Group. These assessments considered the Group's financial performance for the period ended 31 March 2022, the financial position as at 31 March 2022 and the current and medium term forecasts for the Group taking into account the economic environment in Zimbabwe, climate change, the global supply chain and the expected impact on prices and demand for the Group's products. The directors believe that the Group's plans and activities adequately mitigate the risks. Based on this background, the Directors have every reason to believe that the Group has adequate resources to continue in operation for the foreseeable future. Accordingly, these financial results were prepared on a going concern basis.
3. Review Conclusion
   The accompanying condensed consolidated interim financial statements of Ariston Holdings Limited for the six months to 31 March 2022 have been reviewed by PricewaterhouseCoopers Chartered Accountants (Zimbabwe) who have issued an unmodified review conclusion thereon. The review conclusion has been made available to management and those charged with governance of Ariston Holdings Limited. The engagement partner responsible for this review is Ms. Esther Antonio. The report on the review of interim financial information and the condensed consolidated interim financial statements of Ariston Holdings Limited are available for inspection at the registered offices of Ariston Holdings Limited.
4. Events after reporting date
   There have been no significant events after the reporting date.

Directors: Mr. A.C. Jongwe (Chairman), Mr. P.T. Spear* (Chief Executive Officer), Mr. I. Chagonda, Mr. C.P. Conradie, Mrs.T.C. Mazingi, Mr. J.W. Riekert. * Executive