Power cuts hit Art hard

ART Holdings reported a turnover of Z$1,3 trillion compared to $10,6 billion achieved last year for the period ending September 30. 

Earnings per share stood at $286,10, reflecting an increase of only 5 480% from $5,10 in the same period last year.
Pre-tax profits were $131,2 billion, 5 653% ahead of last year’s figure of $2,3 billion.  
Gross profit margin fell to 38% from 44% in the previous year. Zirobwa said that the paper manufacturing division in particular negatively affected earnings.  Converting and stationery division put in 43% of the revenue figure at $577,5 billion from $3,2 billion in the corresponding period last year, an increase of 17 670%, a figure above national inflation.  
eversharp volumes surged 34% but it was Typek bond paper and Femcare products which boosted the division’s earnings. Typek put up 50 percent of

Flexi-mail’s profits.
Softex volumes were down 23% because of the effects of price controls although margins had been strong in the first half. Femcare put in 40% of Softex’s earnings.
There were increased inefficiencies in factory operations largely as a result of power cuts and coal shortages, particularly at Mutare Board and Paper Mills and water cuts at Kadoma Paper Mills.   
Newsprint production was 16% lower on last year and sales volume dropped 14%.  
The group had issued $30 billion worth of credit notes after the price rollback.  

Post published in: Economy

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