Business

ZAMEFA records increase in turnover

TRYNESS TEMBO, Lusaka
METAL Fabricators of Zambia Plc (ZAMEFA) has recorded an increase in turnover from about K470,000 in June, 2015 to over K545, 000 in June, 2016 due to improved sales.
Of the total turnover, exports recorded an increase from K343, 896 in 2015 from K369, 219 in 2016 while domestic stood at K176,277 in 2016 from K128,808.
This is according to ZAMEFA’s unaudited results for the half year ended June 30, 2016 availed to the Daily Mail yesterday.
“Turnover was higher compared to last year due to improved sales mix and depreciation of the Kwacha against the United States (US) dollar between the first half of 2015 and the corresponding period for 2016,” the report reads.
However, the company’s operating income increased mainly due to an improved sales mix and higher sales revenue.
Meanwhile, the company’s net foreign currency exposure reduced by 55 percent compared to June,2015.
The reduction in exposure combined with a 14 percent appreciation of the Kwacha against the dollar from 2015 year-end to June 2016 resulted in foreign exchange gain, compared to the loss incurred in 2015.
On the outlook, the firm expects competition from both old and new players in the market.
The report says the competition will be addressed through the investments in various departments of the company.
“The board and management are optimistic that with the current investments in human resource, equipment modernisation and increased productivity, the company will remain competitive and be able to deliver value for all stakeholders,” the report reads.

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