Steelnet profit up 869%

Steelnet had a good first half recording a net profit of $3.9 billion, and increase of 869 percent over the same period last year. The net profit was more than the turnover for the first half of last year which stood at $2.1 billion.

The company, which demerged from TH Zimbabwe last year and comprises BMA Fasteners, Hastt Zimbabwe and Tube and Pipe Industries, realised a turnover of $13.7 billion, the bulk, $9.7 billion coming from Tube and Pipe Industries.

Its total sales for the year ending December last year were $5.8 billion. It had a net profit of $1.7 billion.

BMA Fasteners had a turnover of $2.3 billion. Exports to South Africa and Zambia continued to improve.

Hastt suffered from diminished local demand because of the current agrarian reform but exports and the Haka range of animal drawn implements boosted sales to $1.8 billion. Its major challenge is to penetrate the South African market to complement its expansion in Malawi and Zambia.

Tube and Pipe Industries enjoyed a good year with steady volumes. It has also broken into the South African market.

Total exports for Steelnet netted $3.7 billion contributing 27 percent of revenue. The company says though it is difficult to predict how well it will do in the second half, it usually enjoys better business during this period.

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