Cafca sees 3% decline in sales volumes in Q1

CABLE manufacturer, Cafca Limited, experienced a 3% decline in sales volumes for its 2024 first quarter, owing to a decrease in industry sector activity and factory cash sales.

In a trading update for its first quarter 2023/24 (October to December 2023), Cafca company secretary Caroline Kangara said the company anticipated an increase in volumes in its next quarter.

“Local volumes for the quarter were 3% down on the same quarter last year with the drop being mainly in the industry sector and factory cash sales. The decline in factory cash sales was offset by an increase in the retail sector. We anticipate an increase in volumes in the next 3 months against the current quarter’s volume,” Kangara said.

“Export volumes were 32 tonnes up in the current quarter compared to the same quarter last year. The foreign currency situation in Malawi has improved resulting in more direct sales to that country. All the other markets have remained steady.”

Historical year-to-date turnover and profit against the same period last year increased by 718% and 503%, respectively.

Cafca manufactures and markets copper and aluminium electric cables and wires. The company also produces and distributes high-voltage equipment and related cable products.

Its primary markets are southern and central Africa, although it has an export footprint that extends to parts of Europe, including Russia.

Established in 1947, Cafca is a subsidiary of the South African cable manufacturer, CBi Electric African Cables (South Africa). Cafca is listed on the Zimbabwe Stock Exchange.

“We aim to increase our export footprint with at least 2 more consignment stock arrangements. Locally we have plans to improve our utility business and initiatives to win over more mining sector customers. An increased solar cable offering will be launched in December,” Cafca said, in its financial report for the year ended September 30, 2023.

During its full year performance, the firm’s revenue grew from ZWL$75,04 billion in the 2022 comparative period to about ZWL$164 billion in the period under review.

The growth was due to the volatility in the exchange rates, sales mix changes and copper price movements.

This volatility in exchange rates, in particular, led to a near 558% increase in profit after tax as the company experienced a net monetary gain of ZWL$2,88 billion from a loss of ZWL$6,15 billion in the 2022 comparative period.

The net monetary gain and increase in revenue led to a profit after tax of ZWL$51,34 billion, from a 2022 comparative figure of ZWL$7,8 billion.