Padenga Holdings has recorded a revenue of US $223 million in the financial year ended 2024. The firm’s audited results reflect a 43% increase from the US$155 million recorded the previous year. The revenue is driven by a strong performance by the group’s mining subsidiary Dallaglio which saw turnover rising by 53 percent.
In a statement Group chairman Thembinkosi Sibanda underscored the contribution of the mining arm to the firm’s revenue.
“The Group recorded a turnover of US $223,00 million in the year under review. This was a 43.96 increase over the US S155,58 million recorded in prior year. The group’s revenue performance growth was largely driven by increased gold production volumes as well as firm gold spot prices. The revenue contributions from the group’s business units were as follows: Dallaglio 86 percent (81percent in FY23), Padenga Agribusiness 14 percent (19 percent in FY23).
“The Group recorded an EBITDA of $ US 71,81million for the year (US $26,69m in FY23). The increase of 169 percent was a result of the revenue growth and improved operational efficiencies,” said the statement.
The statement said interest expense for the Group went up by 9 percent to US $9,20 million ($8,44 million in FY23), mainly due to the high interest rates on borrowings. In spite of the increase in interest expense, and boosted by better overall performance and tight working capital management, the group managed to reduce its borrowings by US $13, ó0 million to exit the year at US$ 55,92 million.
The Group realized a 242 percent increase in profit before tax of US $48,79 million ($14,28m in FY23) for the year.
Dallaglio recorded a considerable 53 percent increase in turnover from US $125,62 million recorded in prior year to US $ 192,53 million in FY24. This strong growth was achieved on the back of a record annual increase in average international gold spot prices coupled with the increase in gold sales volume.
The business realized a profit before tax of US $42,18 million (US $9,38 million in FY23), with the sizeable increase in profitability flowing down from the higher revenues achieved in the year.
Revenue for the crocodile business for the year at US $30,43 million increased by 29 percent in comparison to the comparative period. This was driven by a 69 percent improvement in the average price realised per skin, which was partially offset by the 40 percent decrease in sales volumes. Total operating costs reduced by 10 percent over prior year as cost containment measures were enhanced in response to the downturn in the skins market.
While the results reflect dominance of gold sector and the challenges faced by Padenga Agribusiness (PAB), it must however be understood that PAB is a profitable business.
Analysts say that with optimism of a better performance in the outlook period, PAB must cut costs to keep afloat. They noted that the crocodile skins business is maturing and still profitable but currently going through challenges.
