· Conductor tonnes sold up 3%
· Export volumes up 32%
· Local sales volumes down -3%
Sandton, Johannesburg - CAFCA Limited achieved a 3% growth in conductor tonnes sold from 559 tonnes in the corresponding period last year to 573 tonnes in the first quarter of its 2024 financial year, according to a Trading Update dated 29 January 2024.
CAFCA is a cable manufacturer in Zimbabwe, listed on the Zimbabwe Stock Exchange, Johannesburg Stock Exchange and the London Stock Exchange. The Company manufactures and supplies cable and allied products for the transmission and distribution of electronical energy and information primarily in Southern and Central Africa.
In the first quarter ended 31 December 2023, CAFCA recorded a strong performance on the export market, with export volumes rising by 32 tons against comparable period last year. this was attributed to improved foreign currency in Malawi which in-turn fueled demand for goods and services. CAFCA said the other export destination markets remained stable during the period.
Meanwhile, local sales volumes dropped by -3% in the period under review owing to an overall decline in the industry. This is also attributed to an overall decline in demand in the local market owing to a currency crisis which necessitated a contractionary monetary policy, as opposed to developments in Malawi as aforementioned.
In the full year ended 30 September 2023, CAFCA achieved a 9% surge in sales volumes. The 3% growth recorded in the first quarter of FY24 is, therefore, a remarkable jump which positions the Company on a trajectory to record an improved volumes performance in FY24.
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