Cable manufacturer Cafca’s profit after tax grew four-fold to $3,85 million in the six months to September 30 from $726 213 last year on strong local demand after refocusing to copper products.
BY TATIRA ZWINOIRA
“Profitability has been improved by strong local demand and a change in sales mix from aluminum to copper products. The high level of finished goods brought forward from the previous year has also contributed and allowed us to hold prices throughout the year,” Cafca company secretary Caroline Kangara said in a statement accompanying the results on Friday.
Revenue rose 57,36% to $30,38 million from $19,31 million last year due to higher volumes and the change in the sales mix from aluminum to copper products.
Cafca also benefited from the protection offered to local companies by government, which stifled cheap imports into the country.
Its performance was largely based on the local market, although it exports into the region.
But this could soon change, as government lifted most of its import regulations on a number of goods last month.
Operating profit also grew four-fold to $5,23 million from a 2017 comparative of $1,22 million.
The increased profitability translated to a basic earnings per share of 11,67 cents, up from a 2017 comparative of 2,21 cents.
Cafca allows for a toll manufacturing option, giving wider options to its customers over its competitors.
Kangara said the performance in the second-half of the year would likely be hit by shortages of foreign currency and the growing disparity between the value real time gross settlement balances and the greenback on the black market.
“Until such a time as the authorities can put in place a more equitable and stable system of foreign currency allocation it will be difficult to protect the fortunes of either the economy or the company,” she said.