CAFCA Limited recorded strong revenue growth in the year ended September 30, 2025, even as profitability came under pressure from rising competition and deliberate strategic decisions to defend market share, the company’s latest Integrated Annual Report shows.

Revenue rose by 56 percent to US$39.5 million from US$25.3 million in the prior year, underscoring sustained demand for locally manufactured cables despite a challenging operating environment. 

However, operating profit declined to US$2.7 million from US$7.9 million, while profit for the year fell to US$1.9 million, down from US$5.8 million in 2024.

In its report, CAFCA said the year was defined by “strategic adaptation and resilience in a dynamic economic landscape,” noting that increased import competition following new government regulations had materially altered market conditions.

“Despite facing significant market shifts, including increased import competition, CAFCA has reinforced its position as Zimbabwe’s leading cable manufacturer,” the company said. It added that the business absorbed certain costs to protect its market presence and support value chain partners, a move that weighed on margins but preserved long-term competitiveness.

Basic and diluted earnings per share declined to 5.50 US dollar cents from 17.14 cents, reflecting the lower profit outcome. Nevertheless, the board declared a final dividend of 2.80 US dollar cents per share, signalling confidence in the company’s balance sheet strength and future prospects.

Operationally, CAFCA recorded marked efficiency gains during the year. Equipment utilisation improved to 80 percent from 70 percent, while on-time delivery rose from 83 percent to over 100 percent. Product quality also strengthened, with first-pass yield increasing from an average of 70 percent to above 90 percent.

“These efforts have created a more resilient and competitive operational base,” the company said, pointing to sustained investment in manufacturing excellence, workplace safety and quality assurance systems.

A key strategic development during the year was the launch of a 1.2-megawatt grid-tied rooftop solar project, expected to be completed in the 2026 financial year. CAFCA said the project would “significantly reduce energy costs and carbon emissions,” while improving power supply reliability in an environment characterised by electricity instability.

The company also expanded its Electrolysis Plant, doubling copper recovery capacity and reducing dependence on imported raw materials, a move aimed at lowering foreign currency exposure and strengthening supply chain security.

CAFCA said it expects a more stable trading environment and plans to regain market share through product diversification and innovation. Strategic priorities for 2026 include expanding the product range into solar photovoltaic and specialised cables, completing the solar project, and accelerating digital transformation through ERP and artificial intelligence integration.

The company acknowledged persistent risks, including import competition, machine obsolescence, volatile commodity prices and power supply disruptions. However, it said these risks are being actively managed through continuous efficiency improvements, equipment modernisation and energy management initiatives.

On sustainability, CAFCA reported progress across environmental, social and governance pillars. The business maintained ISO certifications across quality, environmental management, health and safety, and energy management, and recorded zero major environmental incidents during the year.

“Sustainability is integral to CAFCA’s business strategy,” the company said, adding that its focus remains on “long-term value creation for all stakeholders.”