Hunyani heading for exceptional year?

Packaging company, Hunyani could be in for an exceptional year. Its sales for the first half ending April were higher than those for the entire year ending October, yet it normally has a stronger performance in the second half after the opening of the tobacco selling season.

Its turnover for the first half was $16.1 billion up from $3.7 billion during the same period last year. Total sales for the year ending October last year were $13.3 billion.

The company made a net profit of $2.3 billion compared with $2 billion for the year ending October and $328.6 million for the first half of last year. It says its profits were boosted by a 56 percent increase in exports and a 13 percent increase in total volumes.

The Corrugated Products division was able to grow volumes because of a carry-over of significant stocks of tobacco from last year. Flower volumes also increased marginally.

The company also says it will benefit tremendously from the revised exchange rate but laments that though it traditionally enjoys strong performance in the second half, a significantly lower crop size and escalating inflation could impact on its performance.

(19 VIEWS)