Hunyani posts loss

Business Reporter
Hunyani Holdings Ltd, a paper packaging and forestry company, reported an operating loss in the six months to April as costs increased while revenue declined. The Zimbabwe Stock Exchange-listed company realised $106 600 in operating profit in 12 months to December last year, from $43 000 in the same period last year, the Harare based company said in a statement.

The prior period profit was largely driven by gains in property disposals. Revenue dropped 9 percent to $19 million due to shrinking domestic demand with the bulk of tobacco packaging set to commence in the second half of the year.

About $450 000 was spent on plant upgrade.
Exports accounted for more than 95 percent of the total sales from the printing and converting division, the company said.
The company did not generate much from the forestry business.

“At Corrugated Products and Cartons & Labels domestic commercial volumes were depressed.
“Corrugated products performed well in exports markets. Flexible products volumes were affected by increased competitions which was partially offset by firmer demand for tobacco packaging,” said the company.

Going forward, demand would be subdued due to liquidity constraints. Tobacco volumes are expected to increase along with exports. External competition are also targeting the company’s markets.