ART net income grows 41pct to $1,3mln in H1

ART net income grows 41pct to $1,3mln in H1

HARARE, June 1 (The Source) – Art Corporation’s after tax profit for the six months to March 31, 2017 increased 41 percent to $1.3 million compared to $892,000 same period in prior year, largely driven by improved performance across its business units.

Group revenue was eight percent up at $15.2 million from $14.13 million during the comparative period, mainly on increased battery sales in Zimbabwe.

Gross margins also increased to 40 percent from 38 percent in 2016, resulting in an operating profit of $2 million, an increase from $1.7 million in prior year same period.

“The batteries division achieved an operating profit of $1,3 million. Sales  volumes increased by 26 percent as a result of improved product availability and the exploitation of opportunities presented by policy measures in support of local production,” said chairman Thomas Wushe in a statement on Thursday.

Battery segment revenue stood at $9,4 million marginally four percent higher than the prior year.

Other segments performed positively, with the Eversharp contributing $2,6 million in revenues.

Total assets remained flat at $30,9 million in comparison to the corresponding period.

The company did not declare dividend.