Categories: Stories

Cottco in $3.6 billion profit

Though there was a sharp fall in cotton production due to the drought, the Cotton Company of Zimbabwe (Cottco) still managed to increase sales by 51 percent from $7.1 billion to $10.7 billion.

In its results for the first half ending September Cottco saw its net profit almost trebling from $1.4 billion to $3.6 billion.

Operating profit was up 119 percent from $2.3 billion to $3.6 billion and was boosted by finance income of $775.8 million compared with charges of $283.5 million.

The company set aside $1.3 billion for a supplementary price adjustment.

It says it has signed a memorandum of understand with Mozambicans for a concession to develop, promote and purchase seed cotton.

It is also looking at opportunities in Zambia. It says it should do well in the second half as demand for its products and lint prices are showing signs of firming.

(72 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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