Agro-industrial group Ariston Holdings Limited (Ariston) has reported a 58 percent decline in revenue for the first quarter ended 31 December 2025, underscoring the combined impact of climatic shocks and an ongoing internal restructuring.
“The decline in revenue performance reflects the transitional period associated with restructuring initiatives currently underway within the business, together with weather-related production disruptions earlier in the season,” the company said.
Volatile climatic conditions disrupted production across its estates, although improved rainfall has since strengthened prospects for the remainder of the season.
According to the concern’s latest trading update, “the first quarter of the financial year was characterised by variable climatic conditions across…,” with early summer heat giving way to heavy rains at the Chipinge estates during November and December.
The company said the excessive rainfall “temporarily slowed harvesting activities for tea and macadamia”, compounding operational pressures in an already difficult economic environment.
As a result, tea production volumes slumped 77 percent to 111 tonnes compared to 496 tonnes in the prior comparable period, while tea sales volumes fell 67 percent to 125 tonnes.
Ariston attributed the decline not only to the weather disruptions, but also working capital constraints that delayed key farming activities.
Macadamia operations were also affected by the seasonal conditions, although the group remained cautiously optimistic.
Early nut drop volumes were lower, which management said was a positive indicator of crop retention and future yields.
“Indications are that the macadamia orchards, so far, have good nut set similar to the prior comparative period,” Ariston noted.
Despite the short-term disruption, the group said said the above-average rainfall had improved soil moisture levels and would support upcoming production cycles.
“Rainfall across the estates is currently ahead of the prior comparative period and is expected to support the upcoming production cycles,” the group said.
Ariston is banking on this recovery, with management indicating that weather conditions have now normalised, positioning tea estates to return to regular harvesting cycles.
Beyond climate-related challenges, the group continues to navigate a tough domestic environment marked by high input costs and liquidity constraints.
However, it is pushing ahead with operational efficiencies, including expanding solar energy infrastructure to improve reliability and reduce costs.
Going forward, the group expects improved performance in subsequent quarters, supported by stabilising weather patterns, stronger macadamia export demand and ongoing cost optimisation measures.
“The board remains confident that the operational initiatives implemented during the quarter are beginning to stabilise production systems and will support stronger performance in subsequent periods,” the company said. – TML