Ariston Holdings is pursuing a combination of funding support, debt restructuring and operational efficiency measures in a bid to strengthen its financial position and maintain business continuity, according to its latest annual report.
The Zimbabwe Stock Exchange-listed agro-industrial group reported a loss of US$3,13 million for the year ended 30 September 2025, an improvement from the US$4,28 million loss incurred in the previous financial year.
In the report, the group said they had assessed the company’s ability to continue operating and prepared cash flow forecasts covering at least 12 months from the date the financial statements were approved.
“The forecasts incorporate management’s base case assumptions and reflect the directors’ assessment of the group’s expected operational performance, funding arrangements, and capital management initiatives,” it said.
Ariston has been grappling with liquidity constraints and operational challenges, prompting management to implement a range of measures aimed at improving cash flows and restoring profitability.
As part of those efforts, the group secured US$3 million in longer-term funding in December 2024. The facilities, earmarked for capital expenditure and working capital requirements, have maturities extending to December 2027.
The company also revealed that its major shareholder, Origin Global Holdings, had expressed willingness to continue supporting the business.
“In addition, the group’s major shareholder, Origin Global Holdings, has indicated its intention to provide ongoing shareholder support. Engagements are currently underway to formalise the nature, quantum and timing of this support,” Ariston said.
Management is also in discussions with lenders to restructure short-term debt into longer-term facilities as part of efforts to ease liquidity pressures.
“The group continues to engage its lending institutions with a view to restructuring short-term borrowings into longer dated facilities, thereby reducing near term liquidity pressure and aligning debt servicing obligations with projected cash generation,” the company said.
Alongside funding initiatives, Ariston is implementing operational recovery programmes focused on improving productivity and lowering costs.
The measures include investment in mechanised tea-plucking and harvesting equipment, expansion of solar power infrastructure, workforce rationalisation and increased automation across operations.
The company believes these initiatives will improve efficiencies and reduce production costs at a time when agricultural producers continue to face rising input expenses and power supply challenges.
Ariston has also secured off-take agreements with major macadamia buyers, a move expected to provide greater certainty over future revenues.
“The execution of off-take agreements with major macadamia buyers is expected to improve revenue visibility,” the report said.
Successful implementation of these measures could help the group return to profitability while improving its liquidity position.
At September 30, 2025, Ariston’s current liabilities exceeded current assets by US$2,06 million, reflecting ongoing liquidity pressures driven by historical losses, adverse weather conditions and elevated operating costs.
The challenges facing the company mirror those confronting much of Zimbabwe’s agro-industrial sector.
Fellow tea producer Tanganda Tea Company recently reported that changing climate and weather patterns had significantly affected production volumes and cash flows.
To strengthen its balance sheet and improve liquidity, Tanganda shareholders approved an US$8 million capital raise through a renounceable rights offer.