Chronicle Editor
Oliver Kazunga, Senior Business Reporter
PAPER and packaging group, Amalgamated Regional Trading (ART) Holdings Limited, says its foreign currency exposure for the year ended September 30, 2019 reduced by 100 percent to US$2 million from US$4 million in the prior half year.
In a statement accompanying the group’s financial results for the period under review, chairman Dr Thomas Wushe said that the continued shortage of foreign currency and persistent liquidity constraints affected the group’s trading.
He said this resulted in overall volumes dropping by 18 percent on average across the group’s business units.
“The group’s foreign currency exposure reduced significantly from US$4 million as at half year to US$2 million as at September 30 2019. Net borrowings at ZWL$23,767 million were contained as increased cash sales and concerted collection effort on receivables enabled the group to minimize pressure on cash resources.
“Capital expenditure for the year was restrained to ZWL$8,2 million with focus being on critical projects and improvements,” said Dr Wushe.
During the period under review, he said the group’s revenue improved to ZWL$267 million due to price increases effected in response to the increased cost of production.
Export volumes for batteries and paper increased by four percent and seven percent respectively on the back of consistent product availability and increased selling effort in Zambia and Malawi.
Volumes for solar and industrial batteries increased by 12 percent from prior year as opportunities in the local market could not be fully exploited due to product supply gaps.
“The Softex drive to expand its product range yielded positive results as hygiene volumes increased by eight percent from prior year.
“Included in income is ZWL$157 million relating to the revaluation of assets in an attempt by the group to fairly present to the statement of financial position,” said Dr Wushe.
On the outlook, he said the challenges in the economic environment are expected to persist in the short term as inflation and foreign currency volatility will constrain trading.-@okazunga
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