ART boosts profitability

21 Jun, 2019 - 13:06 0 Views
ART boosts profitability Amalgamated Regional Trading

eBusiness Weekly

Michael Tome
HARARE – Amalgamated Regional Trading Holdings (ART)’s business units remained profitable for the half year to March 31, 2019 despite the currently prevailing turbulent business environment in the country.
The group’s net profit for the period jumped to RTGS$8,7 million, from RTGS$3,7 million in the comparable period last year.
Overall revenue was up 34 percent above last year and closed the period at RTGS$6,2 million as overall capacity utilisation declined to 69 percent from 76 percent.
All business units remained profitable during the period under review.
Revenue for Softex Tissues increased 85 percent to $8,7 million, regardless of volumes being affected by foreign currency shortages to import raw materials – virgin tissue.
Chloride Zambia Volumes increased 30 percent attributable to aggressive selling efforts, battery revenues on the local market went up 37 percent although volumes declined by 14 percent due to the restrained trading during the three months to January 2019.
Kadoma Paper Mills and Waste Collections recorded revenue growth of 69 percent to $6,7 million, volumes at the Mill were 4 percent inferior to volumes recorded in the comparable period last year due to erratic power supplies.
Export volumes for the division rose 15 percent while operating profit increased to $1,5 million on enhanced machine efficiencies.
Hygiene and femcare volumes grew by 17 percent and 10 percent respectively on increased product availability.
Eversharp, volumes went down 33 percent although revenue increased 51 percent to $5,3 million. The unit was badly affected by the disruption to the disruption to the back to school period. Resultantly, its operating profit went down to $0,1 million from $0,9 million.
Inflationary pressures and foreign currency challenges have posed a serious threat to local industry with companies failing to procure the necessary raw materials resulting in reduced production and in some instances, product supply gaps.
Timber demand remained firm during the period which drove a 147 percent increase in operating profit.
Management at Art remains upbeat of improved performance on the back of enhanced efficiencies following retooling of its business. The group also pins its hope on increased exports which should help in its foreign currency generation initiatives.

 

Share This:

Sponsored Links

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds