CAFCA in marginal profit gains

19 Nov, 2019 - 17:11 0 Views
CAFCA in marginal profit gains

eBusiness Weekly

Michael Tome

HARARE – Listed cable manufacturer Cafca profit for the year marginally grew by 0,25 percent to close the year at $18, 8 million from $18 ,7 million in the prior comparable period last year, amidst a 24 percent decline in volumes uptake.

Cafca’s revenue for the period under review modestly grew by 25, 7 percent to $173, 1 million compared to $137, 6 million in the prior comparable period whilst operating profit jumped 219 percent in the positive to close the year at $75, 6 million    $23,7 million.

Local customer base consumed 95, 8 percent worth of Cafca’s produce, attributing 4, 2 percent volumes uptake to exports.

The company’s revenue was derived mainly from Zimbabwe based customers as they consumed $165, 7 million worth of Cafca’s produce from $115, 5 million last year as exports recoded $7, 3 million of the total revenue for the period under review 

Overally volumes dropped 24 percent, a number which the company attributed to the movement in exchange from a 1 to 1 in February to the present which has multiplied by fifteen times.

“Low volumes uptake is attributable to the movement in exchange rates which moved from the 1:1 exchange rate at the beginning of the year and closed 15:1 at the end of the year,” said Cafca in a statement accompanying the financial results.

The firm’s reporting follows The Public Accountants and Auditors Board of Zimbabwe (PAAB) call that requires that all Zimbabwean entities with reporting periods ending on or after July 1, 2019 to apply hyperinflationary accounting.

Going forward the company says it has put place measures to counter the economic headwinds in place

“Looking ahead the company is well placed to take advantage of any opportunities that may arise in either the local or export market and has adopted adequate mitigating startegies against the challenging local economic environment,” said CAFCA.

Cafca is a public limited manufactures and supplies cables for transmission and distribution of energy and distribution of energy and information.

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