CAFCA sees 9% increase in volume sales

Audrey Galawu

Central African Cables Limited experienced a 9% year-on-year increase in volume sales which more than compensated for the drop in total volumes from 2502 tonnes to 2483 tonnes.

CAFCA Board Chairman, Honour Mukushi said sales increased during the volatility period and subdued during the stability period.

He added that the previous year was characterised by volatility in the US/ZWL exchange rate from an oversupply of Zimbabwe dollars and a period of stability caused by an extreme shortage of Zimbabwe dollars

Earnings per share for the company increased by 55.4% allowing the company to recommend the paying of a dividend of US$7.9 cents per share.

Inflation-adjusted turnover significantly grew from US$75.0 billion in 2022 to US$164.0 billion in 2023, influenced by volatile exchange rates, sales mix changes, and copper price movements.

The inflation-adjusted after-tax profit of $51.3 billion was nearly identical to the historical cost after-tax profit of $50.8 billion.

According to CAFCA, the impact of the hyperinflation required the company to invest ZWL$35.2 billion into the stock to maintain the same finished stock holding.

The total indicative share trading liquidity for CAFCA Limited the past 12 months, as of January 3, 2024 is ZWL$76.72 million and an average of ZWL$6.39 million per month.

Meanwhile, reporting on sustainability, CAFCA Managing Director, Rob Webster said the company sees sustainability as key for its success, which is why they also focus on environmental, social and governance issues.

“We always ensure responsible resource consumption, circular economy, mitigation, of negative environmental impacts and promotion of a safe working environment.

“Production output decreased by 12%. Energy consumption per ton of output increased by 20%. This was due to the copper refining plant which was commissioned in the second half of the year.

“Dependence on recycled copper as raw material slowly being threatened by the depletion of the resource from the source.

“This explains a 19% reduction in the use of virgin copper. The organisation continues to put energies in identifying other remaining and emerging sources of recycled copper to use as raw material and ease on the current requirements of forex to buy virgin copper.

“The newly-commissioned copper refining plant is projecting to produce 10 tonnes per month and is upgradable to 20 tonnes per month of pure copper suitable for cable making,” he said.

Webster added that waste management is also a priority as the company constructed a bio digester, which converts biodegradable waste to gas and organic fertiliser.

CAFCA intends to expand its export footprint, enhance the utility business domestically, acquiring more mining sector customers, and launching an increased solar cable offering.

CAFCA manufactures and supplies cable and allied products for the transmission and distribution of electrical energy and telecommunication. Its primary market is Southern and Central Africa, although it has an export footprint that extends to parts of Europe, including Russia.