CourierConnect posted a modest profit of $930 in the year ended December 31, 2015, its first gain in six years, attributed to a reduction in cost of sales and operating expenses.
BY BUSINESS REPORTER
In the previous year, the company posted a loss of $214 309.
Cost of sales went down to $166 179 during the period under review from $267 397 in 2014.
Operating expenses went down to $1 042 323 in the period under review from $1 053 114 in 2014. Other income grew to $95 170 from $88 904.
Revenue for the period was up to $1 114 585 from $1 017 298.
This is the first time the government’s courier and carriage service company has recorded a profit in six years, with the board saying it signalled a change of fortunes and a key step towards self-sufficiency.
“. . . the company managed to post a profit for the first time in six years. This, the board believes, marks the beginning of a new era for the company, as a self-sustained company that will not require fiscal support to fund its operations,” board chairman, Tafadzwa Musarara said in a statement accompanying the company’s financial statements.
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He said competition has been offensive in establishing franchises in some retail outlets to operate as drop off points.
Musarara said despite being a wholly-owned government entity, CourierConnect was losing government and State enterprises business, notably diplomatic bags and Registrar-General’s Office’s mail to private players.
“The new board has tasked management to work on regaining this critical segment,” he said.
Musarara said the board had put in place a diversification programme to increase revenue streams and enhance profitability. This, he said, would result in the introduction of new products to complement existing once.
