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Business Reporter
CAFCA Limited, Zimbabwe’s sole cable manufacturer, says the inventory of finished goods which it uses as a hedge is sitting at 671 tonnes, enabling it to meet demand.
The firm manufactures and supplies cable and allied products for the transmission and distribution of electronic energy and information in Southern and Central Africa.
Group chief executive Robert Webster told shareholders at an annual general meeting (AGM) that the company was selling roughly 225 tonnes a month which gives it 2,5 months cover.
“It’s not a fair reflection of cover because we do (have capacity to) sell 1 309 tonnes per month,” he said, adding that finished goods stock which the business uses as a hedge and also to ensure that it meets customers’ requirements is sitting at 671 tonnes.
“Looking at January we did 172 tonnes against the previous year of 164 tonnes and in February we did 235 tonnes against the previous year period of 2,6 tonnes,” Mr Webster said.
He said profit before tax for the period up to the end of January 2022 stood at $485 million, representing a 161 percent increase from the comparable period last year.
The AGM shareholders endorsed $6,2 million paid as directors fees for the past year, as well as the remuneration of $7,2 to PwC for the past audit.
Shareholders also approved the resignation of PwC as auditors of the company after a long service and they were replaced by Grant Thornton (Zimbabwe) as auditors for the ensuing year
Mr Webster said for the next three months sales volume will be higher than the current quarterly sales.
“Accordingly we are forecasting a six monthly volume increase over the previous year’s six monthly volume of around 10 percent,” he said.
The company in its financial year ended 31 September 2021 said improvement in economic activity coming out of the pandemic lockdown saw volumes increasing from 1 744 tonnes in the prior year to 2604 tonnes in the current year, an increase of 49 percent.
Online Reporter