Art Corp doubles HY20 profit to $123 mln

Art Corp doubles HY20 profit to $123 mln

Harare, (New Ziana) – Diversified industrial firm, Amalgamated Regional Trading (Art) Corporation posted an inflation adjusted net profit of $123 million for the half-year ending March, 2020, doubling its from the comparable period last year on the back of an improvement in sales.

In the same period last year, the firm recorded a profit after tax of
$67.4 million.

The company was however not in a position to declare a dividend.

From manufacturing pens, batteries, waste paper recycling and
tissue production, the company has a number of subsidiaries in various
sectors of the economy.

Art Corporation subsidiaries include Chloride Zimbabwe, Chloride
Zambia, Excide Express, Eversharp, Kadoma Paper Mills, National Waste
Collections, Softex Tissues, Mutare Board and Paper Mills.

In the period, the firm saw its revenues jump 97 percent to $453
million as product sales increased by 10 percent.

Chairman, Dr Thomas Wushe said profitable performance was in spite of
a myriad of challenges faced during the period.

“The group delivered positive results despite the power shortages, a
rapidly depreciating local currency and continued foreign currency
shortages,” he said.

Art Corporation saw its export revenue, in US dollar terms, grow 23
percent compared to same period last year.

“The group’s overall volumes for the half year grew by 10 percent
compared to prior year with growth being driven by automotive and
industrial batteries,” he said.

“The improved power supply in the second quarter enabled the Group to
sustain the momentum in the batteries business.”

Pen sales volumes were up 11 percent “driven by aggressive selling
effort during the back to school period”, he said.

On the other hand, timber half year sales volumes increased by 27
percent compared to prior period.

Erratic raw material supplies however affected the paper business
which saw volumes slumping 33 percent while tissue sales were also
down 27 percent.

Wushe said the group’s capital expenditure, which amounted to $24
million, was primarily invested in back-up power and improving furnace
efficiencies.

Art Corporation net current asset position improved to $53.7million
from a net current liability position of $57.7million at the end of
September 2019.

In the short term, Wushe said the outbreak of the Covid-19 pandemic
would impact on the business.

“The full impact of the pandemic cannot be predicted with a high
degree of certainty at this stage,” he said.
New Ziana

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