Q3 Challenges Hit ART Holdings: Turnover Drops 23%

Audrey Galawu- Assistant Editor

ART Holdings Limited has reported a difficult third quarter for the financial year ending June 2025, with turnover dropping to US$7.8 million, representing a 23% decline compared to the same period last year.

Overall sales volumes fell by 7%, with export volumes down sharply by 32%, driven largely by power-induced product shortages and reduced foreign currency retention thresholds.

CEO Milton Macheka attributed the weak performance to both operational and market pressures, stating: “The challenging trading environment, characterised by liquidity constraints and reduced demand, has put pressure on our margins and overall performance.”

The mothballing of the group’s mill also contributed significantly to financial strain, leading to closure costs and other related obligations.

Macheka noted: “Discussions with potential partners and key stakeholders regarding the mill are ongoing and are expected to conclude by year-end. Environmental and market conditions have not improved sufficiently to support full operation at this time.”

Despite these setbacks, ART Holdings remains committed to restoring profitability through operational improvements, disciplined cost management, and leveraging firm demand in its batteries and timber divisions.

The company faces ongoing risks, including intense price competition, electricity supply challenges, high borrowing costs, volatility in raw material pricing, and competition from imported goods.

Macheka emphasized that management is actively addressing these challenges, saying: “Our focus remains on ensuring sustainability and profitability even in a difficult economic climate.”

Indicative share trading liquidity for ART Holdings over the past 12 months stood at US$140.25K (ZWG3.56M), averaging US$11.69K per month.

The company’s shares closed at 14.55 ZWG cents as of August 21, 2025, with no change on the day.