ART to capitalise Softex

RYAN CHIGOCHE

Listed  diversified conglomerate, Amalgamated  Regional Trading (ART) says it will inject cash into Softex business after buying off Nampak recently, group chairman, Thomas Wushe has said.

ART bought out Nampak’s 50% stake in the tissue and  femcare products manufacturer last year in a deal worth US$800 000 to wholly own the company.

“The successful completion and settlement of Nampak’s shareholding in Softex as well as the completion of key factory upgrades in Chloride will create much needed liquidity headroom to enable the group to complete the capitalization of the (Softex) paper business,” Wushe said.

Group CEO, Milton Macheka, said the takeover of Softex from Nampak is going to give the company leeway to focus on their core business that is the paper and battery business.

“Decisions taken to acquire Nampak’s 50% shareholding in Softex and to acquire Twinsaver’s Riverview Paper Mill will provide scope for the group to focus resources and drive the scalable core business segments, paper and batteries.

The business is focused on balancing capital investment, liquidity and short-term benefits whilst mitigating the long-term risks of delaying critical capital projects,” Macheka said.

The group reported a loss of ZWL$661m  in the year to September 30, 2021 from a profit of ZWL$821m reported in the year  comparative prior.

However, groups sales volumes recovered across all the divisions with an overall increase of 30% compared to the prior year.

Revenue also increased by 27%  to ZWL$5bn in the reviewed period from  about ZWL$4bn in the same period the previous year.

The batteries unit, Chloride, remained resilient in the period under review. Volumes at Chloride increased 39%  compared to prior comparative period.

At Eversharp, volumes  increased 35% driven by eased pandemic restrictions and reduced school calendar disruptions.

Eversharp’s capacity utilisation increased 53%  from 44% in 2020.

The unit’s revenue also shot up to ZWL$436m in the period under review from ZWL$324m recorded in the prior comparable period.