CAFCA Limited posted an increase in profit after tax for the six months ended March 31 2015 due to the increase in sales during the period under review.
BY VICTORIA MTOMBA
The company posted an after-tax profit of $849 573 for the six month period compared to $779 578 during the same period last year.
The group said in a statement that revenue for the six months was 41% above the same period last year due to exports and local market sales. Revenue for the group stood at $14,2 million compared to $10 million in March 2014.
“In terms of volumes, we have pushed 72% more through the factory this half year against last year half year. The volumes have generated less revenue per tonne than in previous period for a number of reasons. Firstly, exports margins reflected in revenue per tonne 20% lower than in the local market. Secondly, sales in the local market were discounted 15% at the beginning of the year as a strategy to combat imports,” the group said.
The company said the sales on barter deal are minimum where aluminium per tonne sells for around a third of the revenue per tonne from copper. Cafca has a barter deal with Zesa whereby it recycles copper from the power utility.
During the six-month period operating profit for the group rose by 8% to $1,1 million compared to the same period last year at $1 million.
The company increased its staff by 25 people for its shift system as a way to increase its output from 200 tonnes to 300 tonnes.
Cafca Limited during the period under review recommissioned the melting furnace to improve the rate at which they process recycled copper.
“This not only significantly increases the amount of electricity we use, but also has high operating costs in terms of consumables and running costs. Repairs and maintenance has also risen pro rata to the volume throughput,” the company said.
Going forward Cafca will maintain its export sales and continue locally with barter deals and focus on getting copper stocks converted to finished goods and sold to generate cash.