ART targets 30% export growth
PHILLIMON MHLANGA
THE Zimbabwe Stock Exchange-listed diversified group, Amalgamated Regional Trading (ART) Holdings Limited, is targeting to grow its exports by 30% to US$750,000 from the current US$500,000 in 2020.
Currently, ART, which operates local units including Chroride, Exide, Eversharp, Softex Kadoma Paper Mills and National Waste, also has presence in Zambia, Malawi, and Mozambique. Now, it plans to enter the Botswana market. The strategy is to grow exports.
The Zimbabwe economy is grappling hyperinflation, electricity and fuel shortages and foreign currency shortages. The crisis is expected to continue next year.
“We are seeing regional growth opportunities in batteries and paper. We are currently averaging US$500 000 exports but we are now targeting 30% export increase by mid-2020,” Milton Macheka, the ART chief executive officer said.
He added: “Zimbabwe is always our anchor market. But, we now target to increase our exports to US$750 000. It’s a stretch target and we believe we can achieve it.”
In its inflation adjusted financial results for the year to September 30,2019, published this week show the group’s overall volumes down 18% due to pricing challenges and inflationary pressures on margin.
Revenue for the group increased to ZWL$267 million in the period under review from ZWL$212 million in prior year, due to price increases effected in response to the increased cost of production.
Profit for ART shot to ZWL$256,9 million from ZWL$29,6 million in prior comparative period.
Export volumes for the batteries and paper increased by 4% and 7% respectively on the back of consistent product availability and increased selling effort in Zambia and Malawi. Volumes for solar and industrial batteries increased by 12% from prior period as opportunities in the local market could not be fully exploited to product supply gaps.
Assets for the group grew to ZWL$625,8 million from ZWL$176,9 million in the same period last year.
The company also suffered a ZWL$21,98 million exchange loss.
The group’s foreign currency exposure reduced significantly
from US$4 million to US$2 million.
