Online Reporter
Tapiwanashe Mangwiro
ART Holdings Limited has reported a 4 percent revenue dip to US$7 million in the first quarter of its 2026 financial year, after constrained liquidity, high borrowing costs and working capital pressures weighed on performance, despite the stable macroeconomic environment.
In a trading update for the first quarter ended December 31, 2025, the diversified manufacturer said the period was deliberately shaped by a renewed focus on margin improvement and cash generation, following a value protection decision to scale down the paper business.
The operating environment was marked by consistent monetary policy measures that offered businesses time to adjust strategically. However, access to funding remained limited and borrowing costs stayed elevated.
Although power availability improved during the quarter, production across some units was still disrupted by working capital gaps, affecting the group’s ability to meet demand consistently.
Overall sales volumes were 1 percent below the comparative period of the prior year. Market demand showed firmer signs in selected product lines, particularly Exide batteries and Eversharp pens.
The cumulative effect of production interruptions and logistical delays, largely linked to constrained working capital, dampened volumes during the quarter.
Export volumes declined by 2 percent year-on-year as the group continued to selectively tighten credit terms in regional markets, a move aimed at protecting cash flows and reducing credit risk in an environment of heightened uncertainty.
