Star Africa Corporation has returned to profitability after posting a net profit of US$1.4 million for the year ended 31 March 2026, reversing the previous year’s US$4.8 million loss despite lower revenue.
Group turnover declined nine percent to US$58.1 million after the company deliberately reduced prices to strengthen its competitive position against imported products.
However, lower foreign exchange losses, tighter administrative cost controls and stronger operational performance enabled the company to record an operating profit of US$1.1 million, compared with a US$3 million operating loss a year earlier.
Chairman Rowan Mbire said the company benefited from improving economic conditions following the previous year’s drought.
“Operationally, the business recorded strong volumes in the second half of the financial year, successfully clawing back the underperformance recorded in the first half,” Mbire said.
The group’s Goldstar Sugars division maintained stable sales of nearly 60 000 tonnes while production increased slightly.
Management said stronger demand from beverage and confectionery manufacturers helped offset growing use of alternative sweeteners.
“GSS enjoyed robust demand during the second half of the financial year,” the chairman said, adding that improved disposable incomes and stronger mining activity supported customer demand.
Country Choice Foods also recorded strong growth, with specialty product volumes rising 63 percent to 2 311 tonnes after improvements to its distribution model. Rental income from the property portfolio increased 9 percent, while earnings from its associate company nearly doubled.
Despite the turnaround, Star Africa said informal trading remained one of its biggest challenges.
“The high level of market informalisation… presents severe operational, financial, and compliance bottlenecks for formal manufacturers,” the company said. It also continued engaging government over VAT treatment of sugar and the sugar tax, which management believes are hurting industry performance.
Looking ahead, the group expects higher sales volumes as efficiencies from business restructuring and retooling improve competitiveness. Management is also assessing regional export opportunities while keeping a close watch on geopolitical tensions and fuel price increases that could disrupt global supply chains.