In part 3 of our project to bring you insights into value creation by some of the elite companies in Zambia, we had the opportunity to interview the CEO of ZAMEFA in July 2016. Coincidently, Rosetta Chabala was celebrating a fantastic half year performance by the company. The exclusive of the interview will published soon. For now let’s look at their numbers for 2016 thus far.
Revenue was up 7% as at June 2016 compared to the same time last year. Domestic sales were stronger than exports by 30% which is indicative of a thriving economy in Zambia (development drives demand). You will recall in our earlier blog on ZAMEFA, value was being created mostly through exports. Change in tide. Operating profit was also up by 102% compared to last year’s score with net margin up to 9%. A sales mix and depreciation of the kwacha was partly attributed to that. However, we also note that there was improvement in their operations as return on non-current assets improved by 10%. Furthermore, return on capital employed increased from 18% last year to 23% showing good capital budgeting and a fantastic relationship with lenders at the company increased its current liability debt to help with working capital.