ART reels under tough operating environment
LIVINGSTONE MARUFU
Publicly-traded diversified conglomerate, Amalgamated Regional Trading Holdings Limited (ART), is reeling under a subdued trading environment which has weighed heavily on turnover, and overall profitability.
The company said persistent economic headwinds have reduced the group to an underperformer.
Chairman Dr. Thomas Wushe stated that the group recorded a subdued performance across most divisions, swinging into a loss for the full year ended September 30, 2025.
“The 2025 financial year was both challenging and defining for the group, as decisive measures were taken to safeguard long-term viability and reposition the business for recovery in 2026. Although the operating environment stabilised in the second half of the year, the Group was unable to recover from the pricing pressures, constrained liquidity, and imported product competition experienced in the first half,” Dr. Wushe said.
During the year, the Board approved the discontinuation of operations at the Kadoma Paper Mill. Dr. Wushe cited “sustained underperformance driven by structural shifts in the sector, inconsistent power availability, and persistent working capital demands.”
This shutdown, he noted, “eliminates a significant operational drag and enables capital to be redirected towards more sustainable and profitable divisions.”
He said structural and macroeconomic headwinds persisted throughout 2025.
“Limited local currency liquidity continued to constrain the market and impact collections. Borrowing costs remained high, necessitating reduced credit to customers. Power supply challenges persisted, with alternative power sources carrying higher operating costs. Inflation remained relatively high, with marginal deceleration towards the end of the year,” Wushe said.
The group’s turnover fell 17% to US$28.3m, while overall volumes declined by 5%. This reflected “the impact of reduced prices implemented to protect market share prior to Statutory Instrument 34 of 2025, ongoing liquidity constraints, and intensified competition from imports.”
Gross profit margins declined by 10%, resulting in an operating loss of US$0.8m. A loss after tax from continuing operations of US$1.4m, coupled with a US$2.2m loss from discontinued operations, culminated in a total comprehensive loss of US$3.5m.
Cost containment initiatives, however, delivered a 26% reduction in operating expenses.
“Liquidity preservation and operational realignment remained key priorities, with capital expenditure limited to essential upgrades while receivables and high inventory levels remain major focus areas as the group works to balance product availability with cash generation,” Dr. Wushe stated.
Due to the poor performance, the company was not in a position to declare a dividend.
While anticipating continued economic uncertainty, the group expressed confidence that its 2025 restructuring has “laid a strong foundation for recovery.”
Key priorities for the year ahead include “completing non-core asset disposals to unlock liquidity, restoring profitability, maintaining strict cost discipline, and leveraging the Group’s strong brands to regain market share.”
Looking forward, the group is confident that Government reforms will continue to support a conducive operating environment, “including stronger enforcement against illegal imports and counterfeits, encouragement of import substitution and local procurement, and broader macroeconomic stability.”
