Commentary
Revenue at Zmw1 029 million is nominally in line with the revenue of the corresponding period in the prior year (2022: Zmw1 030 million).
Operating profit for the current period increased to Zmw36,9 million (2022: Zmw3,2 million), due to improved gross profit margins resulting from a more favourable sales mix.
Finance costs of Zmw14,6 million (2022: Zmw8,2 million) were 78% higher than those of the corresponding period in the prior year, due to the negative effect of a weakening Zambian kwacha against the USD during the period on the USD denominated funding and an increase in interest rates.
The average Zambian kwacha to USD exchange rate depreciated in the period under review resulting in a foreign exchange loss of Zmw52,9 million (2022: Zmw19,0 million) which was the main reason for the increase of the loss in the period.
The Company’s cash position at the end of the first half of the current financial year improved to a positive net cash position of Zmw35 million compared to a negative position of Zmw0.7 million in the prior period, while the company’s gearing ratio remains challenging at 80% (2022: 77%).
The Company’s Loss per share (LPS) for the period under review increased to Zmw0.97, while the LPS for the comparative period of 2022 was Zmw0.81
