Categories: Stories

Cairns profit up nearly tenfold

Strong demand for products of Cairns Holdings saw the company’s sales increase more than four-fold while net profit increased nearly ten-fold during the year ending August but volumes only increased by 1 percent.

Sales increased from $1.2 billion last year to $5.5 billion while operating profit rose from $128.7 million to $1.2 billion.

The company’s profit before finance costs and taxation was boosted by $312.2 million from its associate company, ME Charhons which ended up contributing 21 percent of the profit after tax.

The profit after tax was $1.1 billion, up from $116.9 million last year.

The company says its exports increased by 12 percent.

Margins for the food division improved due to increased production efficiencies. Paprika contributed 19 percent of the profit after tax.

The high inflation the country is currently experiencing, the shortage of foreign currency and problems in sourcing raw materials will pose serious challenges for it in the coming year but its research and development programmes should strengthen its competitive position.

(34 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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