Starafrica Corporation Limited recorded a 31 percent increase in revenue for the first quarter ended June 2026, as the group’s sugar processing units posted higher sales volumes on the back of lower price adjustments.
“Strategic lower price adjustments implemented in the latter part of the previous financial year to improve competitiveness were successful in defending market share and in stimulating demand,” the group said in a trading update.
“Revenue for the quarter grew by 31 percent, compared with the same period in the prior year, driven by volume increases at Goldstar Sugars (GSS) and Country Choice Foods (CCF),” the group said.
Granulated sugar sales volumes at GSS were 38 percent higher than prior year comparative period.
Starafrica said the sales performance was “anchored by competitive local pricing and an overall increase in market demand”.
“This growth was achieved despite production being adversely affected by water supply interruptions and logistics-related plant downtime (delivery of critical spares was delayed by the global logistics disruptions arising from the conflict in the Middle East),” the company said.
Volumes at the group’s sugar specialties business, CCF, went up 19 percent compared with the prior year, driven by sustained customer demand.
Starafrica said occupancy rates remained steady at Silver Star Properties, with focus on tenant retention.
Gross profit margin, however, compressed to 17 percent (2026: 18 percent) as the benefit of higher volumes was partly eroded by input cost inflation.
Operating profit, measured before the share of profit from the associate, was 58 percent ahead of the prior year comparative, driven by volume-led revenue growth and higher sundry income, partially offset by increases in operating expenses.