Demand for cable strong: Cafca – The Zimbabwe Independent

Listed cable manufacturer Cafca Limited says demand for cables remains strong and is optimistic about achieving budgeted sales volumes for the current year.

The company’s sales volumes for the half-year ended March 31, 2024 were 10% higher than last year’s comparative figures for both domestic and export volumes.

“Most national sectors had constant growth. “The recently introduced ZiG (Zimbabwe gold) currency is expected to bring more stability to the economy,” the company said in its financial results.

The turnover in inflation-adjusted figures was ZW$686 billion (USD31.1 million), up 42% compared to the previous period.

Operating profit in inflation-adjusted figures was 16% higher than the last period, less than the increase in turnover.

“The shift from copper to aluminum in terms of sales mix resulted in lower profitability. Inflation accelerated in the period from January 2024 to March 2024,” he said.

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The Zimbabwe dollar weakened significantly between January 2024 and March 2024 in the official market.

The company continued to protect itself against inflation by maintaining an adequate stock of finished products.

Accounts receivable of ZW$86 billion (US$3.9 million), mainly related to local mining and export customers.

Trade accounts and other payables of ZW$20 billion (US$906,824) related to local suppliers. Loans worth ZW$15 billion (US$680,117) were used to finance working capital.

Cafca manufactures and supplies cables and related products for the transmission and distribution of electrical energy and telecommunications.

Its main market is southern and central Africa, although it has an export footprint that extends to parts of Europe, including Russia.

The company prides itself on manufacturing over 900 wiring products to British, South African and Zimbabwean quality standards.

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