Cafca Limited reports increased export volumes and profit from direct sales in Malawi
LISTED cables manufacturer Cafca Limited says export volumes were 32 tonnes up in the current quarter compared to the same quarter last year profiting more from improved direct sales in Malawi.
The firm manufactures and supplies cable and allied products for the transmission and distribution of electronic energy and information in Southern and Central Africa.
Said the firm in an update, “The foreign currency situation in Malawi has improved resulting in more direct sales to that country. All the other markets have remained steady.
“Local volumes for the quarter were three percent down on the same quarter last year with the drop being mainly in the Industry sector and factory cash sales.”
The firm noted that the decline in factory cash sales was offset by an increase in the Retail sector
“Historical year-to-date turnover and profit against the same period last year increased by 718 percent and 503 percent respectively. We anticipate an increase in volumes in the next three months against the current quarter’s volume,” read the report.
Recently, directors expressed confidence that the firm will continue operating into the foreseeable future as a going concern citing the historical cost revenue which increased in 2023 to $109,6 billion compared to $12,2 billion recorded during the 2022 financial year.
The increase was mainly attributable to the increased selling prices due to inflationary adjustments.
According to the 2023 Integrated Annual Report, the profitability of Cafca improved with the company reporting a historical cost profit before income tax of $59,7 billion for the year ended September 30, 2023, compared to a profit for the year of $4,9 billion for the same period last year.
The company secured overdraft and loan facilities amounting to $15 billion from local financial institutions to fund working capital requirements.
This, it said, will alleviate the raw material challenges that the company is facing.