Astra profits bump 167 percent

prior year to US$13,5 million driven by growth in sales.
In addition to improved group sales volumes during the period, the company also attributed the better profitability to its decision to cease operations at the loss-making Steel Division in April last year.
The group’s paint operations registered a 15 percent sales volumes growth despite competition from new entrants in the paints market during the period.
The stiff competition, which largely affected the lower end of the market, resulted in Astra’s paints division recording a decline in gross margins by 6 percent.
The chemicals division also registered an increase in sales volume growth, up 20 percent.
This division currently contributes 39 percent to group profits.
Astra chairman Dr Charles Utete said the company’s recorded sales growth during the period under review was notwithstanding the challenges that have been dogging the wider manufacturing sector.
“Despite the difficult operating environment the group achieved satisfactory sales volume growth. Aggregate sales volumes grew by 19 percent,” he said.
The 19 percent bump in total sales volume was, however, lower compared to the 28 percent recorded in the prior comparable period.
Manufacturing companies in the country have been facing a number of operational challenges particularly relating to low liquidity levels, antiquated machinery, high overheads and stiff competition from imports
Meanwhile, the company has also indicated plans to lease out premises previously occupied by the discontinued operation (Astra Steel).
The property is valued at around US$3 million.