Total revenue was ZWL1,63 billion
Volumes slightly improved by 9 tonnes
Earnings per share improved by 69%
Harare – Electrical and telecommunication cable manufacturing firm CAFCA has recorded a
24% improvement in revenue and a slight 9 tonne improvement in volumes for the year
ended 30 September 2020 compared to the prior year mainly as a result of a better sales
CAFCA manufactures over 900 cabling products primarily for the Zimbabwean, Southern and
Central African markets but also has an export footprint that extends into parts of Europe.
Total revenue for the year in inflation adjusted terms came in at ZWL1,63 billion while that
of the prior year was ZWL1,31 Billion, of this, in the year under review, ZWL1,47 billion came
from customers domiciled in Zimbabwe while ZWL192 million came from external
customers mainly in Zambia, Malawi and Mozambique.
In the comparative period, ZWL1,2 billion was from customers in Zimbabwe while ZWL112
million came from regional exports.
Sales volumes however only improved slightly from 1735 conductor tonnes in 2019 to 1744
conductor tonnes in 2020.
In a statement accompanying these results, the company secretary, Caroline Kangara said
that while this slight improvement had some bearing on the improvement in revenue, the
main factor was due to a better sales mix.
“Turnover in inflation adjusted terms increased by 24% partly due to the slight increase in
tonnage but mainly due to sales mix – more copper conductor sales and less aluminium
conductor sales,” she said
Meanwhile, earnings per share increased by 69% in inflation adjusted terms, however no
dividend was declared.
The company however lamented the effects of COVID 19 on business and a depressed local
demand emanating mainly from a tough macro-economic environment which was characterised by inflation and price volatility throughout most of the company’s financial year.
Going forward however the company says they are gearing up for a further, greater
improvement in volumes.
“We have budgeted for an increase in volumes in 2021 which we believe is attainable
provided there are no significant changes in the economy or in the regional economies,” the
company secretary said.
Equity Axis News.