eBusiness Weekly
Jennifer Mufamba
The Zimbabwe Stock Exchange (ZSE) – listed stationary, paper and batteries manufacturer, Amalgamated Regional Trading (ART), says its export volumes grew 78 percent for the first quarter ending December 2021 on the back of improved demand for its products in foreign countries.
The company, in a trading update, said the 78 percent volume growth represents a 73 percent increase in exports driven by battery sales volume.
This came as Exide’s expanded foothold in Zambia and Malawi was supported by constant supply of a larger range of batteries.
The group’s chief executive officer, Milton Macheka said: “Batteries volumes increased by 10 percent overall on the back of a 73 percent volume increase in exports as the extended Exide footprint in Zambia and Malawi was supported by the consistent supply of a wider range of batteries.”
ART Holdings said the capacity upgrade in the new standalone production unit improved the availability of industrial and solar products.
In addition, Macheka said the bulk tissue export volumes recovered by 91 percent, while the overall paper volumes decreased by 18 percent during the period under review.
“As a result of the impact of the foreign currency backlog on imports, local demand showed signs of recovery at the conclusion of the quarter,” Macheka added.
The group highlighted that at the end of the quarter, both tissue and kraft order books were full, and stronger economic activity is likely to result in increased availability of local waste paper.
Meanwhile, the group’s revenue grew by 18 percent following the depreciation of the local currency by 25 percent against the United States Dollar.
“The continued mismatch in exchange rates depressed the group’s performance as 40 percent of the growing export revenue is retained at the prevailing auction market exchange rate,” said the group.
ART Holdings also noted that given the price inelastic nature of most market segments, this mismatch had a negative influence on inflation and profits.
However, the company said Eversharp volumes increased by 35 percent compared to the prior year propelled by preparations for the back-to-school period.
Furthermore, Macheka said the division expects to do well because it has been able to source sufficient inputs to meet demand.
The group said timber volumes jumped by 31 percent on the back of improved milling efficiencies and strong demand.
ART Holdings’ seedlings investment project has created a better platform for the division to boost its output through partnerships.
The group managed to ease all the constraints encountered in importing raw materials through increased stockholding levels.
