Art targets improved earnings

PAPER and packaging group, Amalgamated Regional Trading (ART), is targeting an 18 percent revenue upturn to $39 million in the financial year 2018 driven by increased exports, production volumes and efficiency across the board.

The improved earnings will also be spurred by improved exports in the battery division and the Eversharp unit that is targeting 30 percent of its revenue to come from exports.

Management at ART says focus will be on growing export revenues to enable the importation of raw materials and settlement of foreign obligations.

Despite the challenging economic environment characterised by foreign currency shortages, chief executive officer Milton Macheka, indicated the group is already on course to meeting the projected earnings growth, building on the 2017 momentum.

Already, in the first two months of the financial year 2018, ART’s revenue and profit before tax amounted to $6,07 million and $1,47 million respectively with management upbeat the diversified firm is on course to meet its projections.

The group has lined up capital projects, which are expected to boost production volumes, enhance product availability as well as boost earnings.

In the second quarter of financial year 2018, ART is targeting installation of an exercise book machine under the Eversharp division.

Eversharp is currently producing pens and other writing materials and the exercise book production will close the gap that currently exist in the market.

Macheka said, the unit has great potential for export led growth and is currently riding on its dominance on both the domestic and regional market.

“This is the business with strong export potential with dominance even in the local market,” he said.

According to the 2017 financials, the Eversharp unit contributed 15 percent of the group’s total revenue, after the battery unit which made up 66 percent of the total revenue.

ART is also banking on increased exports from the battery unit, which recently revamped its manufacturing plant.

The group invested over $2 million into the battery unit for the installation of import substitution production.

This initiative is also expected to spread and implemented by other divisions to reduce the group’s foreign currency exposure.

In 2018, ART is also planning to start revamping its Kadoma Paper Mill although results of this will be realised in financial year 2019.

When successfully implemented, this should see a 200 percent production jump.