CAFCA records decline in sales
ZIMBABWE’S sole cable manufacturer, CAFCA Limited, has reported a decrease in sales in the first quarter ended December 2022 comparedvto the corresponding period in 2021.
The company recorded a 75-tonne decline to 559 tonnes in the conductor cable tonnes sold in the first quarter ended December 2022 compared to the 634 tonnes sold in the same period in 2021.
The quarter was unfavourable to the company as both local and export volumes declined. Local volumes for the period under review were 8% lower compared to the first quarter in 2021 due to the drop in the utilities sector and factory cash sales.
“Factory cash sales was down as a result of an uncompetitive US$ price which has since been resolved with the change in the retention rules,” said the company.
Export volumes were 34 tonnes down during the quarter versus the same period in 2021, due to shortages in foreign currency.
“Our customers in Malawi continue to experience difficulty in obtaining foreign currency so stock replacement there is slow,” CAFCA said.
Mozambique had a large once-off order in the quarter which was not repeated, but there is a large order that is to be delivered in March this year. This will close the shortfall to the region.
Rwanda was steady and the company expects an order to the Democratic Republic of Congo in March this year.
In addition, the group has three months sales cover in finished goods stock, giving CAFCA the ability to meet the +/-1400 stock lines the market requires in relation to the weekly production target of 16 line items.
Meanwhile, CAFCA opened a consignment stock arrangement in Tanzania during the period under review.
Nevertheless, the group recorded a historical year-to-date turnover and profit increment of 375% and 595% respectively against the same period in 2021.