Textile giant, David Whitehead had a net profit that was more than one-and-a-half-times that for the entire year ending September during the first half of this year. But the company still complained that rampant inflation and the devaluation of the local current had worsened conditions for procurement of its raw materials.
It says this had a negative impact on the production levels of all its three factories. Sales shot up from $1.6 billion to $4.1 billion beating the entire sales for the year ending September by just over $100 million.
Exports increased from $84.4 million to $211.8 million surpassing last year’s $137.5 million. Net profit was $181.4 million compared with $45.1 million for the first half of last year and $106.6 for the full year.
The company says the spinning division had a 40 percent decline at some periods due to shortages of lint. It says the shortage of foreign currency also forced some ginners to export lint instead of supplying local spinners.
The decline in production in the spinning division led to a decrease in activity in the fabrics division at Chegutu. But the second half had kicked off well with improved inflows of cotton lint.
The company says it is revamping boilers and compressors at all three factories and commissioned a new fabric printing machine in November to increase production.
It is also looking at ways of expanding its absorbent cotton wool plant. It is now marketing this product directly.