Online Reporter
Nelson Gahadza
CABLE manufacturer Cafca Limited says durable economic stability, export-led growth and investment in productive sectors will underpin the group’s operations going forward.
Growing macroeconomic stability has provided businesses with greater predictability, allowing companies to plan operations, manage costs and commit to longer-term capital investments.
Cafca said the stable environment has supported volume growth, which recorded a 20 percent expansion for the nine months to June 30, 2026, compared to the same period last year.
“Local volumes were up 21 percent whilst exports were up 8 percent due to better conversion of the opportunity presented by the stable trading environment,” Cafca said in its third-quarter trading update.
The company said the operating environment was characterised by domestic monetary stability and growth in export revenue, although businesses continued to face unprecedented geopolitical shocks that have disrupted global supply chains.
Despite these external pressures, Cafca recorded strong volume growth in the third quarter, with sales surging by 32 percent compared to the corresponding period last year.
“This is reflecting improving trading conditions despite escalating costs of raw materials emanating from the supply chain shockwaves,” the company said.
The improved operating conditions translated into stronger financial performance, with year-to-date revenue rising 31 percent compared with the prior year.
Cafca attributed the growth to higher sales volumes and price adjustments implemented in response to rising raw material costs.
Raw material costs increased by 36 percent on a year-to-date basis compared with the previous year, reflecting continued pressure from disruptions in global supply chains and higher input costs.
Despite the cost pressures, the company said its cost containment measures helped protect margins and improve operating leverage.
As a result, profit before tax was 147 percent above the prior year, supported by a combination of stronger volumes, pricing adjustments and efforts to contain supply chain-induced inflation.
