A punitive VAT policy imposed on Zimbabwean products by the Zambian government in the first half of last year adversely affected exports from General Beltings but this was mitigated by strong demand in the local mining sector, the company says in its report for the year ending December.
The proportion of exports to total turnover dropped from 56 percent to 38 percent as a result of lower exports to Zambia.
The company’s total sales, however, improved by 402 percent from $2.5 billion to $12.4 billion while operating profit soared from $524 million to $4.1 billion.
Net profit increased from $329 million to $2.3 billion.
The company says it maintained its key quality standards and retained the SABS product marks which helped open doors to regional markets.
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