adminCables manufacturer, Cafca posted an after tax profit of $1,8 million for the year ended September 2015, down from $2 million last year as the company reduced product prices to drive volumes and remain competitive. The group recorded a 24 percent jump in revenue to $29,3 million after pushing up volumes by 39 percent. “Turnover growth was not in line with volume growth as we reduced selling prices and also increased exports at lower selling prices,” the Zimbabwe Stock Exchange listed firm said.
“There was also a shift in mix from copper to aluminium products.” Cafca opted not to declare a dividend “in view of the amounts invested in debtors and stock and the uncertainty in the economy.”
The group’s basic earnings per share slid to 5,48 cents from 6,21 cents due to the drop in profitability. Cafca said it achieved its target of pushing up volumes to 300 tons from 200 tons a month which necessitated a price reduction to remain competitive. It said the bulk of its sales went to the Zimbabwe Electricity Supply and Distribution Company although it also exports to regional markets.
Cafca said it would only be able to increase its production on condition there was an improvement in economic activity locally or in its export markets which include South Africa and Mozambique. In the period, the group’s total assets increased to $18,3 million from $14,9 million the previous year. — New Ziana.
Online Reporter