Art to leverage on global sourcing partners

AMALGAMATED Regional Trading (Art) says it will leverage on its global sourcing partners to deliver cost-competitive raw materials.
This comes as the diversified group had previously raised concerns about raw materials shortages impacting its operations.
“The increased capacity and new equipment will enable us to deliver a wide range of quality products to our customers,” the company said in a trading update for the third quarter to June 2023.
During the quarter, Art’s overall volume for the batteries division declined by nine percent owing to the power induced downtime at the beginning of the quarter.
Production efficiency for the division however, increased in June and July following the commissioning of new grid casters, boosting the ‘Powered by Exide’ winter promotion.
“The project to increase automotive battery manufacturing capacity is nearing completion and will enable improved stockholding across all product ranges,” the company said.
The paper division’s volumes for the quarter declined by five percent as trading was affected by exchange rate volatility and pricing distortions, particularly in the formal retail sector.
The company said demand for bulk tissue on the export market remained firm while competition from imports however, increased in the informal market with pricing and access to foreign currency being key in creating competitive advantage.
Art said it expects to commission a new converting line before the end of the financial year with resultant cost savings, quality improvement and increased tissue output.
Under the Eversharp division, volumes increased by 28 percent to 12,430, 000 pens on the back of increased production output following retooling and improved power supply.
“Exports into Zambia resumed and stationery trading was buoyed by the launch of the Eversharp Mate and Eversharp Pen Pal brands in response to market demand,” Art said.
At Mutare Estates, timber volumes during the period under review increased by seven percent to 2, 350 cubic meters.
Art said the order book for both structural timber and pallets remains firm as customers in the sector prefer to trade in foreign currency.
Meanwhile, revenue for the period grew by 54 percent to $75,2 billion.
Overall volumes declined by two percent while export volumes recovered, registering a 16 percent increase from the prior year in line with improved product availability.

newsdesk@fingaz.co