Sugar producer Star Africa Corporation says it evaluating regional export opportunities after operational improvements and lower production costs strengthened the group’s competitiveness.
The group, which has spent recent years restructuring its operations and upgrading ageing equipment, said improved efficiencies have positioned the business to pursue growth beyond the domestic market.
In a statement accompanying the group’s financial results for the year ended 31 March 2026, chairman Rungano Mbire said the turnaround had created a platform for regional expansion.
“Accordingly, the group is evaluating regional export opportunities, the execution of which will be supported by favourable cost structures,” Mbire said.
The company has been rebuilding its operations after years of underinvestment left it with outdated plant equipment and production inefficiencies.
Although turnover declined nine percent to US$58,1 million from US$63,9 million in the previous year following strategic price reductions introduced at the start of the financial year, profitability improved significantly.
Star Africa posted an operating profit of US$1,1 million, compared with an operating loss of US$3 million in the prior year.
Mbire said the recovery was driven by lower foreign exchange losses and reduced administrative costs, which more than offset fair value losses recorded in the group’s investment property portfolio.
Profit after tax also recovered, rising to US$1,4 million from a loss of US$4,8 million in the previous financial year.
At Goldstar Sugars, sales volumes remained broadly unchanged at 59 596 tonnes compared with 59 613 tonnes a year earlier, while production increased marginally to 60 819 tonnes from 60 212 tonnes.
“GSS enjoyed robust demand during the second half of the financial year. The company’s key customers in the beverage and confectionery industries experienced strong growth, propelled by rising disposable incomes supported by a booming mining sector and higher diaspora remittances,” Mbire said.
“This second-half recovery was achieved despite the rising use of sugar alternatives, for which the regulatory framework on their use remains outstanding.”
The group’s Country Choice Foods division also reported improved performance, with specialty product volumes increasing 63 percent to 2 311 tonnes from 1 416 tonnes in the comparable period.
Mbire attributed the growth to improvements in the company’s distribution model and stronger consumer spending.
He said grey imports remained a challenge but management continued to respond through competitive pricing and faster market execution.
The group’s property and investments division also contributed to earnings, with rental income increasing nine percent to US$389 264 from US$356 225, supported by rental reviews and strong tenant retention.