adminZIMBABWE-listed cable manufacturer Cafca, in which South Africa’s Reunert has a significant stake through its holding in CBi African Electric Cables, is anticipating strong volume growth in 2015 after a projected increase in demand for cables from its South African holding company.
Manufacturing companies in South Africa are much better off compared to their competitors in Zimbabwe who have seen capacity utilisation sag to below 37 percent, with only a few managing to make a profit.
South Africa’s manufacturing production rebounded by as much as 8 percent in September, Statistics SA data showed on Monday.
Cafca on Monday posted a 32 percent stronger operating profit for the full year period to September.
Other manufacturing companies in Zimbabwe have hit hard times, with domestic demand suppressed at the moment owing to a flat-lining economy.
Profit attributable to shareholders for the year period strengthened by 43 percent.
The company’s stronger financial position in difficult times is also reflected in that it managed to lift basic earnings per share from last year’s 4.34c to 6.21c for the period under review.
Cafca is Zimbabwe’s biggest cable manufacturer and said yesterday that volumes for the year under review had risen “mainly due to orders received” from its holding company in South Africa.
Caroline Kangara, the company secretary for Cafca, said operating profit had surged 32 percent to and partly attributed this to “increased volumes of recycled” copper.
“Having eliminated our borrowings at the half year and having put funds on deposit for the latter six months of the year net finance charges improved from $157 455 (1 767 260) last year to $34 676 in the current year,” she said.
But it did not declare a dividend as there is a need to “invest” in machine capacity.
It is gearing up for increased exports into the sub-Saharan region while also intensifying its grip on the domestic market. — Online.
Online Reporter