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Panashe Chikonyora & Kiyara Matambanadzo
Amalgamated Regional Trading Corporation’s industrial batteries division recorded a 91 percent revenue increase in inflation adjusted terms for the first quarter on the back of rising demand for solar and industrial standby batteries by industry.
The improved performance was for the first quarter to December 31, 2019.
Zimbabwe has been experiencing serious fuel and power shortages which have significantly reduced most companies’ operational capacities.
And this has buoyed the firm’s batteries division.
According to management, the steep revenue increase in its industrial batteries division this year from 82 406 recorded last year to $150 729 reflects a 28 percent upward move in the division’s volume, which it said is attributable to “improved product availability as well as strong demand for solar and industrial standby batteries.”
Last year the group’s industrial batteries division recorded 12 percent volume increase for the year up to 30 September 2019 which it said was as a result of the sourcing of alternative sources by both domestic and business electricity consumers and the need for constant energy supply to power operations particularly by mobile network operators and mining companies.
Despite the harsh trading environment which is characterized by high inflation, foreign currency and power shortages the group said it “managed to establish foreign currency streams from exports and…was able to use alternative power sources to minimize the impact of the erratic power supplies”.
“The operating environment is not expected to improve in the short term. The group will continue to seek growth opportunities in the region whilst consolidating its resilient and dominant business segments in the local market in order to minimize the impact of the macro environmental challenges,” said ART said in its first quarter trading update.
The group’s plantations recorded a 93 percent upward move in revenue to $6 851 from $3 554 which it recorded in 2019, owing to timber trading which supported production.
The Softex and Eversharp divisions’ revenues also increased with a 31 and 27 percent increase. Although delays in receiving raw materials depreciated Softex’s volumes by 23 percent, Eversharp’s increased by 15 percent on the back of “improved product availability and a successful marketing campaign at the onset of the back to school period”.
Meanwhile, ART’s paper division did not perform well as its Mill Plant’s availability decreased to 35 percent as a result of the increased load shedding in the country, which saw it recording a 46 percent drop in the division’s volumes.
Online Reporter