Ariston Holdings has identified working capital shortages and elevated borrowing costs as key factors behind its weak financial performance in 2025, with management now prioritising operational recovery and improved cash generation during the current year.
The agro-processing group, which has been facing financial and operational challenges in recent years, said limited access to affordable funding constrained production and affected profitability.
Addressing shareholders at the company’s recent annual general meeting, chief executive Farai Madziva said a number of measures were being implemented to stabilise the business and lay the foundation for recovery.
“Production disruptions, working capital constraints, increased financing costs, all materially impacted profitability and cash generation,” Madziva said.
He noted that liquidity challenges had affected the group’s ability to execute key agricultural activities on time, with direct consequences for output and productivity.
“Liquidity constraints affected the timing of operational execution. In agriculture, delayed intervention has a direct impact on productivity and output,” he said.
According to Madziva, the company also faced mounting pressure from creditors, operational disruptions and changes in leadership during the year under review.
Despite these difficulties, management remains confident that the group’s underlying business fundamentals remain sound.
The chief executive said Ariston continues to benefit from strong productive assets and established operations in key agricultural sectors.
“Domestic tea demand remains strong. The outlook for macadamia pricing is improving and, importantly, the productive base of the business remains intact,” Madziva said.
Tea and macadamia production continue to anchor the group’s operations, supported by both local and export markets. The company has also resumed poultry production at Kent as part of efforts to improve short-term cash flows and diversify revenue sources.
Since taking over leadership of the business, Madziva said management’s attention has been directed towards restoring operational efficiency, strengthening financial controls and rebuilding confidence among stakeholders.
“We are focused on restoring operational consistency, strengthening financial discipline, improving productivity and re-establishing the business as it should be,” he said.
Management has designated 2026 as a recovery year, with particular emphasis on improving cash flows, enhancing operational performance and executing turnaround initiatives effectively.
“We believe disciplined execution and stronger cash generation will progressively position the group for recovery,” Madziva said.
The company hopes that improved productivity, tighter financial management and renewed focus on its core agricultural operations will help place the business on a more sustainable footing in the years ahead.