• Export volumes grew to 92 tonnes

  • Local volumes up 8%

Harare - ZSE-listed cables manufacturer, CAFCA posted an 8.2% increase in export volumes to 92 tonnes for the third quarter ended 30 June 2022 from a comparative of 85 tonnes recorded in the same period last year.

In a trading update, CAFCA said Rwanda and Mozambique contributed to a growth in year-on-year sales but its customers in Malawi however, continue to experience difficulty in obtaining foreign currency so sales there are slightly constrained.

Local volumes for the quarter were 8% up on the same quarter last year with the growth mainly in mines and factory cash sales.

“Aluminium conductor sales were down mainly due to the impact of awaiting regulatory approval for the barter deal with ZETDC,” the Company said.

Conductor tonnes sold grew to 676 tonnes from 625 tonnes recorded in the same period last year.

CAFCA highlighted that it has three months of sales cover in finished goods stock giving it the ability to meet the +/-1400 stock lines the market requires concerning its weekly production target of 16 line items.

“We believe that the next three months' volume will be higher than the current quarter’s volume which should result In the Company achieving year-on-year growth in volume sales,” CAFCA said.

Meanwhile, the Company noted that banks have moved interest rates above 200 % which obviously will materially reduce profits though its interest bill will still be at least four times covered by profit.

Equity Axis News