LISTED cable manufacturer, Cafca Limited, says demand for cables remains firm and is optimistic in achieving budgeted sales volumes for the current year.
The firm’s sales volumes for the half-year ended March 31, 2024 were 10% above last year’s comparative figures for both domestic and export volumes.
“Most domestic sectors had a steady growth. The newly introduced ZiG (Zimbabwe Gold) currency is expected to bring more stability in the economy,” the firm said in its financial results.
Turnover in inflation adjusted numbers was ZW$686 billion (US$31,1 million), up 42% compared to the prior period.
Operating profit in inflation adjusted figures was 16% above last period, which was less than turnover increase.
“The shift towards aluminium from copper in terms of sales mix resulted in lower profitability. Inflation accelerated in the period January 2024 to March 2024,” it said.
The Zimbabwe dollar weakened significantly between the period January 2024 to March 2024 on the official market.
The company continued to hedge against inflation by having adequate stocking of finished goods.
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Accounts receivable of ZW$86 billion (US$3,9 million) mainly related to export and local mining customers.
Trade and other payables of ZW$20 billion (US$906 824) related to local suppliers. Borrowings of ZW$15 billion (US$680 117) were utilised to fund working capital.
Cafca manufactures and supplies cable and allied products for the transmission and distribution of electrical energy and telecommunication.
Its primary market is southern and central Africa, although it has an export footprint that extends to parts of Europe, including Russia.
The company prides itself in manufacturing over 900 cabling products of British, South African and Zimbabwean quality standards.
