Apex Corporation of Zimbabwe’s export volumes took a knock due to power disruptions at its Scandia Wire division.
company’s export volumes which over the past three years had been contributing over half of the company’s turnover accounted for only 37% due to the persistent power cuts, according to the group’s financial results for the period ended October 31, 2007.
Apex said it could have achieved “better results” had it not been for the power cuts and the exchange rate which did not keep pace with inflation.
Because of the overpriced exchange rate the company ended up exporting at a loss to protect its market position.
Apex recorded a turnover of $3,43 trillion which represents a growth of 174% over the comparative period.
Operating profit rose to $791 billion against $172 billion in 2006.
“Apex will continue to increase external sales in order to pick increased volumes as well as compensate for reduced local demand,” the group said.
Share of profits from an associated company rose to $424 billion from $3 billion. A fair value adjustment gain of $47 billion was booked through the income statement.
Profit before tax was $709 billion rising 24 000% from $3 billion in 2006. Earnings attributable to group shareholders were $457 billion against a loss of $22 billion the previous year.
Apex said it continued to suffer from the current macroeconomic environment.
Although it achieved a marginal volume growth in the foundries of 3% this did not translate to a significant increase in profit.