adminDiversified manufacturer, Amalgamated Regional Trading (ART Corporation) bounced back to profitability for the half-year ended March 31, 2016 after recording net returns of $892 000 from a loss of $114 000 in the same period last year, the firm’s latest financial results show. ART Corporation has three main divisions producing batteries, paper and ball point pens.During the period, the firm saw its revenues declining five percent to $14,13 million but managed to reduce its expenses by 13 percent.
“The positive improvement (in financial performance) was a result of the benefits of the factory upgrades done in 2015 and the cost containment strategy arising out of the restructuring of the group,” said chairman, Dr Thomas Utete Wushe.
The return to profitability saw earnings per share rebounding to a 0,22 cents gain from a 0,02 loss in the previous period.
In terms of divisional performance, the battery unit recorded a profit before tax of $985 000 after a six percent rise in sales.
“Margins were affected by lead international prices. The Zambia Kwacha was stable during the period and Chloride Zambia traded profitably despite reduced volumes in the market,” Dr Wushe said.
The paper division turned around its performance from a $220 000 loss in first half of last year to a $22 000 gross profit pushed by a three percent rise in tissue sales.
Eversharp, the group’s pen producer, recorded a two percent increase in sales.
“The reduced cost of production arising from the recapitalisation efficiencies, resulted in higher margins and a profit before tax of $465 000 compared to $176 000 in the prior year,” the chairman said.
ART Corp opted not to declare a dividend “to conserve cash in the business.”
In the outlook, Dr Wushe said a recapitalisation programme of the battery unit would allow the section to produce at lower cost. — New Ziana.
Online Reporter