Cafca records 444% increase in income

REVENUE at cable manufacturer Cafca Limited increased by 444% to $15,7 billion in the half year ended March 31, 2023 compared to the prior period, buoyed by exports to regional markets.

The company exports some of its products to Tanzania, Rwanda, Malawi and Mozambique.

“Turnover increased by 444% to $15,7 billion compared to the same period last year,” company secretary Caroline Kangara said in a statement accompanying the company’s financial results for the half year ended March 31, 2023.

“Volumes were down 9,5% but were compensated for in the sales mix where copper conductors increased 4,7%. Exports were slightly up year to date compared to the same period last year with a new consignment stock initiative in Tanzania in addition to the previous Rwanda, Malawi and Mozambique consignment stock initiatives.”

Cafca saw a 455% increase in profit after tax to $4,9 billion, in line with the turnover increase.

“We have repaid our local borrowings so the $450,8 million on the expensive borrowings will not recur. The company has moved to a net positive bank position awaiting more affordable interest rates,” Kangara stated.

Included under trade and other receivables are goods in transit which together with the increase in inventories reflect the company’s strategy of investing profits back into inflation hedged assets.

The company lost some production days in April due to stockouts of copper cathode, while the non-availability of foreign currency in the economy was a major concern to the company.

“The pricing, quality and supply of power are a concern as our production processes cannot have interruptions nor can the furnace be switched off. Price increases should be commensurate with quality and supply commitments,” Kangara said.

Cafca manufactures and supplies cables for transmission and distribution of energy and information; it has its primary listing on the Zimbabwe Stock Exchange and its secondary listing on the Johannesburg Stock Exchange.-newsday