STARAFRICA Corporation (StarAfrica) says its going concern was momentarily hampered by a spike in pricing by the company’s sole supplier of raw sugar but rectified the situation by securing a new supplier.
In February 2023, Gold Star, a StarAfrica affiliate, placed staff on indefinite leave and temporarily shuttered its refinery in Harare in protest at the supplier’s price hike and onerous business terms.
“The ability of the group to continue generating cash flows was temporarily affected by a price increase by its sole local supplier of the major raw material, however, the increase has since been reversed and an alternative supplier secured in Zambia.
“Management has also implemented a turnaround strategy focused on cost containment and improved procurement practices,” the company said in its notes to the interim abridged consolidated financial statements for the half-year ended September 30, 2023