The Cotton Company of Zimbabwe made a net profit of $13.5 billion during the year ended March, and it is looking forward to an even better year. According to the company’s results, its profit increased by 473 percent from $2.4 billion to $13.5 billion despite a decrease in seed cotton intake of 45 percent.
Seed cotton intake was down to 133 000 tonnes. The company says crop estimates for the current year are slightly ahead of last year. International prices have firmed by an average of 20 percent. And the country now has a favourable exchange rate.
It also says the lifting of price controls on ginned seed and lint in May has boosted its profitability and will enable it to come up with viable producer prices which should increase production.
Total sales for the company increased from $15.8 billion to $26.4 billion. It also spent $3.2 billion in acquiring a 34.75 percent stake in the Seedco, which it says will create synergies with one of its subsidiaries, Quton Seed Company.
The company says the Chinhoyi seed cotton bulk handling project is nearing completion and will be commissioned in the third quarter of this year.
It has also set up a new spinning mill with an export zone status and has been granted a concession that allows it exclusive operations in certain areas of Mozambique. It says it is also exploring opportunities in other countries in the region.