Cables manufacturer CAFCA expects a five-fold increase in earnings per share for the six months to March to about 4.5 cents per share from 0.7 cents in the comparable period last year after a sharp rise in demand for its copper products.
The company said a change in sales mix from aluminium to copper products is bearing fruits.
“Profitability has been improved by a favourable copper price, changes to trading terms and a change in sales mix from aluminium to copper products. The prior year was adversely affected by a volume decrease that resulted in break even months until the cost base was significantly reduced – this cost base has since been maintained,” said the company.
CAFCA’s primarily exports to countries in the Southern Africa Development Community (SADC).
The company recorded a 6 percent increase in revenue to $19.3 million in the full year to September last year attributable to an eight percent increase in volume, while profit before tax increased by 84 percent to $1.2 million on lower costs. – The Source