A 45 percent growth in exports mainly to Zambia and Kenya, saw volumes at Hunyani grow by 6.7 percent during the year ending October.
Sales grew by 485 percent from $13.3 billion to $77.9 billion with operating profit shooting up by 602 percent from $2.7 billion to $18.8 billion.
Net profit increased from nearly $2 billion to $13.1 billion, an increase of 563 percent.
The company says its volumes remained constant because of growth in its market share.
The Corrugated Division recorded significant growth in export volumes and was buoyed by carry over tobacco volumes from the previous year.
Sales for Flexible Division were lower because of price controls and value added tax on imports into Zambia.
The Pulp and Paper Division had significant growth in exports to East Africa.
Volumes at Printopak declined but its market share grew because its competitors underperformed.
Volumes at the Forests Division were down because of reduced commercial agriculture.
New export markets were being pursued in Zambia and Mozambique.
The tissue division, Softex, remained the dominant player in the local market.
The company opened a strategic waste paper operation in Botswana called Dumatau and it operated satisfactorily.
The company says it spent $3 billion on capital expenditure with $2 billion being spent on the upgrading the pulp mill.
This will improve pulp production and reduce importation of more expensive waste paper from South Africa.
(15 VIEWS)
0 Comments