- Group volumes declined 5%, turnover fell 17% to US$28.3 million, driven by severe liquidity constraints, and intense import competition
- Energy Storage saw 1% dip but strong 11% export growth to Malawi/Mozambique, stationery & Tissue volumes fell 9%, timber division shone with 15% volume growth
- Aggressive 26% operating expense cuts and liquidity focus mitigated deeper losses, while strategic moves like Softex relocation export diversification, innovation, position the group for volume rebound
Harare – ARTD Holdings Limited , the Zimbabwe-based diversified manufacturer operating in energy storage, stationery and tissue, and timber sectorsis positioning itself for a strong recovery in 2026, with the imminent relaunch of its upgraded Softex tissue operations in January and continued product innovation, most notably the successful introduction of the EV10 pen, expected to drive renewed momentum across key segments.
Despite a challenging fiscal year 2025 (FY25) that saw overall volumes decline by 5% and a total comprehensive loss of US$3.5 million, the Zimbabwe-based diversified manufacturer demonstrated notable resilience and laid important groundwork for turnaround.
The volume contraction was primarily driven by pre-emptive price reductions amid severe macroeconomic liquidity constraints, and intensified competition from low-cost Asian imports.
These pressures resulted in a 17% drop in group turnover to US$28.3 million, a 10% decline in gross profit margins, and an operating loss of US$0.8 million. The discontinued Paper/Tissue Milling business contributed significantly to the headline loss, recording US$2.2 million in red ink from prolonged underperformance.
However, management successfully contained the impact, reclassified the assets as held-for-sale, and anticipates completing the disposal by the end of 2026 – a strategic move to focus resources on higher-potential core operations.
ARTD countered the difficult trading environment with disciplined cost management, achieving an impressive 26% reduction in operating expenses. This operational discipline helped mitigate deeper losses and set a solid foundation for future growth.
Divisional performances presented a mixed but encouraging picture. In the Energy Storage division, local battery volumes dipped only marginally by 1% despite supply chain disruptions, while Chloride Zambia volumes fell 25% due to fierce competition and payment challenges. Encouragingly, export sales to Malawi and Mozambique increased by 11%, highlighting the value of regional diversification. The division also streamlined distribution channels, shifting toward company-owned shops for improved control and efficiency.
The Stationery & Tissue segment experienced a steeper 9% volume decline, reflecting weak consumer liquidity and product returns in the first half, together with intense import pressure. Nevertheless, the launch of the new EV10 pen successfully protected market share during the critical back-to-school season.
Most importantly, the Softex tissue unit completed its relocation and equipment installation following the Kadoma Mill closure, paving the way for a more agile and cost-effective operation when production resumes in January 2026.
In stark contrast, the Timber division at Mutare Estates emerged as a clear bright spot, with volumes surging 15% on robust demand for structural timber, improved milling efficiencies, strategic pricing, and tight cost control. This performance reflects the strength and potential of the timber segment even in a challenging market environment.
Looking ahead, ARTD appears well-placed to capitalize on these foundations in 2026. The Softex relaunch, expanded innovation pipeline, sustained export growth in batteries, continued momentum in timber, and the release of capital from the paper mill disposal all point toward a realistic prospect of 5–8% volume growth and a return to break-even or modest profitability, assuming reasonable macroeconomic stability.
While risks such as currency volatility and commodity price fluctuations persist, ARTD’s proactive cost discipline, strategic repositioning, and focus on innovation and regional markets provide a clear and credible pathway to recovery.
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