Companies

CAFCA volumes down 27% in Q3

BUSINESS REPORTER

Industrials concern CAFCA recorded a 27% dip in volumes in the third quarter ended June 30 from the same period last year as the company takes a hit from the lockdown introduced to curb the Covid-19 pandemic.

President Emmerson Mnangagwa announced a total of three weeks lockdown beginning March 30 to curb the spread of the virus.

It was eased before cases started rising prompting the government to introduce more curbs like the dusk to dawn curfew, shorter working hours for companies and a hefty fine for not putting on face masks.

In a trading update for Q3, CAFCA said conductor tonnes sold during the period were 393 from 540 sold during the same period last year.

Conductor tonnes sold year to date were down to 1,228 from 1,384 in the same period last year. The company is optimistic of a rebound by year-end.

“Despite local volumes being 27% below the same quarter last year mainly due to the original Covid-19 lockdown, we are still confident that by year-end our volumes will be in line with the previous year,” CAFCA said.

The industrials concern said it is increasing finished goods stock levels to ensure local and export sales requirements are met and also as a hedge against hyperinflation.

The finished goods stock levels stand at 806 tonnes against a monthly sales model of 140 tonnes. It has also ramped up exports.

Exports for the nine months to date are 207 tonnes versus the 143 tonnes realised in the same period last year.

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