adminASTRA Industries, the country’s leading paint manufacturer, is set to re-open its distillery plant and its subsidiary in Chiredzi to increase revenue after it recorded a 24 percent downturn in turnover.
Speaking at the company’s annual general meeting yesterday, Astra Industries group managing director Mackenzie Mazimbe said the group’s performance last year was affected by non-operation of the plant and subsidiary.
Both entities are set to be re-opened by next month.
“We’re restoring our distillery plant back in operation as a means of financial back up by next month and look for different marketing strategies to increase revenue,” he told shareholders.
“The group will also focus on the opening of the Chiredzi Company, which was not operational due to lack of raw materials, to service the Chiredzi and Triangle market,” added Mazimbe.
For the year ended December 31, 2014 Astra recorded a turnover of $32,3 million which was 19 percent lower than 16 months ended December 31, 2013.
Profit after tax during the period increased by 33,8 percent to $2,1 million. Recently Astra Industries was delisted from the Zimbabwe Stock Exchange due to failure to meet the requirements of the bourse.
“The company was affected by low demand of local products and lack of projects which are underway has resulted in to low turnover,” he said.
He added that the group will focus on marketing and innovation strategies to increase revenue growth for future outlook.
Shareholders were also informed about the retirement of board member Herbert Nkala, who did not seek re-election. — BH24
Bongani Moyo
Online Reporter