Africa

Zimbabwe: Covid-19 Hits Padenga’s Crocodile Business

Crocodile breeder, Padenga Holdings Limited, has warned of a significant fall in profitability for the year to December 31, 2020 relative to prior year due to the negative effects of the Covid-19.

Since last year, global economies have been at various levels of lockdowns, which caused supply chain disruptions due to movement restrictions.

Most countries closed their borders as part of efforts to limit the spread of the pandemic, which had an adverse impact on businesses.

For Padenga, which is an export oriented company, said the pandemic has had an adverse impact on sale of crocodile skins to its key markets in Europe.

“The board of directors of Padenga Holdings Limited wished to advise shareholders of a material change in the group’s profits for the 2020 trading year.

“The group’s crocodile and alligator businesses have been impacted by market dynamics resultant from the Covid-19 pandemic and in particular a softening of international markets for luxury exotic skin products resulting in one of the most depressed trading environments ever,” said chairman Mr Thembinkosi Sibanda in a profit warning notice to shareholders.

The warning is a precursor to the financial results to be released at a date to be announced.

Mr Sibanda indicated that there were limited sales opportunities for skins not meeting exacting quality standards and when found, sold at very depressed prices particularly for alligator skins from the United-States-based subsidiary, Tallow Creek Ranch.