Proplastics reports $263k HY profit

Proplastics reports $263k HY profit

HARARE, September 18 (The Source) – Plastic products manufacturer Proplastics on Friday reported a 43 percent increase in after tax profit to $263,000 in the six months to June driven by an 11 percent growth in sales volume.

Proplastics was unbundled from its parent company Masimba Holdings in June.  It said its $1 million High Density Polyethylene (HDPE) plant, which was commissioned last year, had contributed significantly to its overall output.

Revenue was up 13 percent on prior year to $6,6million.

Overheads grew 11 percent as a result of a once off cost associated with the unbundling exercise.

Finance costs were 33 percent lower on prior year while earnings before interest, tax, depreciation and amortisation (EBIDTA) increased by 26 percent to nearly $800,000.

The company said it expects a stronger second half performance and that it will continue with its plans to modernize its plant in order to make it regionally competitive.