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Sikhulekelani Moyo

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LISTED plastic pipes and fitting manufacturer, Proplastics Limited, has recorded 23 percent growth in turnover for the financial year ended 31 December 2022.

In a statement accompanying the financial report for the period, Proplastics chairman Mr Gregory Sebborn said the turnover grew by 23 percent to $11,7 billion.

“This was on the back of price adjustments considering economic fundamentals, both locally and globally,” he said.

Mr Sebborn also said sales volumes were down by seven percent on the prior year given the depressed domestic demand as economic challenges persisted.

He said exports contributed six percent to total sales, which was below the internally set target of 10 percent.

“As the cost of sales managed to increase by only seven percent in the prior year on the back of operational efficiencies in the new factory and more direct and smart procurement of raw materials, gross profit margins improved significantly to 42 percent from 34 percent in the prior year,” said Mr Sebborn.

“Resultantly, the group posted a gross profit of ZW$4,9 billion. Inevitably, given the movement in exchange rates and the fact that the group imports about 90 percent of its raw materials, thus holding significant amounts of foreign liabilities at any given point, the group recorded net exchange losses amounting to $896 million. This is compared to the prior year’s net exchange loss of $146 million.”

Meanwhile, Proplastics said the statement of financial position remained strong with total assets amounting to $18 billion.

“The current ratio closed the year at 1,11. The gearing ratio remained low at three percent giving the group leverage to borrow further for the funding of raw materials. The group closed the year with cash and cash equivalents of $516 million,” said Mr Sebborn.

-@SikhulekelaniM1