- Volumes slightly declined to 836 tonnes
- Export volumes grew to 14%
- Revenue stood at ZWL$294.2 million
Harare – In line with market wide fall in demand, CAFCA reported marginally declined volumes for the half year ended 31 March 2020.
“Volumes for the six month period to 31 March 2020 were 836 tonnes in line with the comparative period last year of 844 tonnes.”
The company however said export volumes grew from 11% to 14% of sales in spite of the marginally declined volumes performance.
Meanwhile, inflation adjusted revenue increased by 81% to ZWL$294.2 million from ZWL$162.5 million recorded in the comparative period last year.
Revenue from customers domiciled in Zimbabwe amounted to ZWL$265.8 million from ZWL$154.9 million in the prior year whilst revenue from external customers was ZWL$28.4 million.
Profit before taxation for the period under review surged to ZWL$83.1 million from ZWL$3.5 million and the company attributed it to the inflation benefit of carrying large stocks of finished goods and no foreign liabilities and the gain on export debtors and foreign bank and cash balances.
Commenting on the financial position, the company said investment in working capital stood at ZWL$151.6 million against ZWL$11.2 million in the same period last year due to profits generated in the period and borrowings as at 31 March of ZWL$23.6 million.
On the outlook the company said despite the impact of the coronavirus on the local market, it is still pursuing its monthly sales model of 140 tonnes on the export market and supply chains.
“Assisting CAFCA to mitigate these threats are our finished goods stock of 746 tonnes and our export consignment stock arrangements. We have commitments from our raw materials suppliers that our immediate needs will be met with only our imported spare parts requirement being a minor challenge. Despite the expected local market liquidity constraints indications from our local customers are that local expectations will be met.” added the company.
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