HARARE, May 12 (The Source) – Cable manufacturer CAFCA on Thursday reported a 34 percent decline in revenue to $9,4 million in the six months to March as sales in the export and domestic markets continued to fall.
Operating profit slumped to $300,000 compared to $1,1 million last year.
Cafca primarily operates in Zimbabwe but is listed on both the Johannesburg and Zimbabwe stock exchanges. Apart from supplying the local market, the company exports its product to South Africa, Mozambique and Zambia.
The company issued a profit warning at an annual general meeting in February after sales had dropped 31 percent year-on-year.
As a result of the downturn in both the export and local markets, the company has scaled down operations halving monthly production from 300 tonnes to 200 tonnes.
The company said it expects sales for the second half of the year to be 30 percent lower compared to last year and has implemented measures to cut costs by a similar percentage.
Its financial position remains relatively strong with debtors and stock of $14, 5 million against liabilities of $2,9 million.