Almot Maqolo, Staff Writer 
CAFCA, Zimbabwe’s only cable manufacturer, says its raw material consumption in the year ended September 30, 2023 (FY 2023) declined 10 percent to 2 791 metric tonnes from 3 107 metric tonnes in the comparative period.
While the company uses aluminium, polyvinyl chloride, polythene and galvanised steel wire, copper remains the main raw material in the production of cables.
Plastics, aluminium, and fresh or recycled copper are the non-renewable raw resources used in the production of cable.
“The decrease in the raw materials used was because of the changes of the business model and responding to the customer needs,” the company said in its FY 2023 sustainability report.
Cafca raised concerns about the declining supply of local scrap copper due to lack of foreign currency to import the metal and cover the gap.
“Redundant copper availability continues to dwindle resulting in a 19 percent decrease in usage. To meet production requirements, copper cathode usage increased by 71 percent,” the company said.
“However, the organisation continues to harvest the little redundant copper left locally to reduce the demand for foreign currency to import copper.”
The firm plans to profit from the newly operational electrolysis plant, which is expected to provide 20 tonnes of benefits every month.
As for the financials, the inflation adjusted value of acquisitions of property, plants, and equipment rose 346,41 percent to $1,16 billion in FY 2023 from $260,15 million in FY 2022.
Revenue increased by 118,66 percent to $164 billion in FY 2023 from $75 billion in FY 2022, reflecting the volatility in exchange rates, sales mix changes and copper price movements.
Most of Cafca’s topline comes from the domestic market.
The group’s profit after tax went up by 558,20 percent to $51,3 billion during the period under review from $7,8 billion previously.
Earnings per share stood at $1 520 against the previous year’s $232, allowing Cafca to propose a dividend increase of 204 percent year over year to US$7,90 cents per share, as opposed to $23 per share in the prior year.
The group’s operating profit appreciated by 173,12 percent to $63,42 billion in FY 2023 from $23,22 billion in FY 2022.
In order to guarantee prompt fulfilment of market demand and to retain its export competitive edge, the company said it will continue to store finished items in stock.
newsdesk@fingaz.co.zw
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.
