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Business Reporter
PAPER and packaging group, Amalgamated Regional Trading (ART) Holdings Limited, says it has maintained a sound financial position with adequate resources to continue in operational existence for the foreseeable future.

According to the group’s financial statement for the half year ended 31 March, the company is geared to unlock opportunities in its key markets.

This comes after the group posted revenue amounting to Z$3,609 billion in inflation adjusted terms, an increase of 18 percent compared to the prior year.

Its overall volumes for the period grew by nine percent, with strong performance from the battery export market and volume recovery in all the paper units.

The historical turnover achieved of Z$2,957 billion represents an increase of 100 percent from the prior year, reflecting the impact of increased foreign currency sales recorded at the prevailing official market exchange rates, said the company.

Gross margins, however, declined by five percentage points to 34 percent reflecting the impact of increased export volumes and the general increases of input costs.

Overally, margins remained strong as stringent cost control was maintained across the divisions.

“We have confidence in the group’s resilience and ability to work with strategic stakeholders to mitigate risks and unlock opportunities in our markets,” said the group.

“The focus on cost containment and cash preservation should enable the business to sustain its positive trajectory.”

The firm said its battery business performance in the local market was subdued during the period due to the cumulative impact of the Covid-19 pandemic, which exacerbated already high levels of pressure on consumers from inflation and currency instability.

“Total battery volumes increased by six percent compared to prior year.

The paper business segment volumes recovered as the foreign currency auction market induced pricing distortions reduced in the second quarter,” it said.

“The relentless focus on supply chain improvements and cost efficiencies yielded positive results.

Paper volumes increased by one percent compared to prior year.

“Eversharp performed well on the back of strong demand driven by the year-end national examinations and back to school preparations.

Volumes increased by 39 percent compared to the prior year.”

On project update, it said the installation of the Tissue Mill and the new tissue converting line in Kadoma is progressing well and is expected to be complete by year-end.

“The board is fully aware of the challenges that lie ahead to secure raw materials and sustain production given the prevailing environment,” it said.

“The group believes that this investment puts it at a critical inflection point and will approach the challenges and the new realities of doing business with a positive and proactive mindset.”

The company manufactures and distributes papers, ballpoint pens, lead acid batteries and sanitary products. It also provides forestry resources management services.

Its products are distributed locally and across Southern Africa.

The main business segments include the battery unit, paper segment, Eversharp, Softex and plantations.