Metal Fabricators of Zambia Plc. Reports 14% Increase in Revenue to ZMW2,336 Million, Boosted by Sales Volume and Product Mix

Published On: December 11, 2023Company: Metal Fabricators of Zambia Plc. (ZAMEFA.zm)
What factors contributed to the increase in Metal Fabricators of Zambia Plc.'s revenue in 2023?
The increase in revenue was due to several factors, including higher sales volumes, an improved mix of products - particularly wire and cables, and the depreciation of the Zambian Kwacha against the USD which raised revenue from USD sales. However, this was slightly offset by the impact of lower copper prices in 2023 compared to the previous year.

Metal Fabricators of Zambia Plc. Abridged Report Summary

  • Revenue increased by 14% to ZMW2,336 million, up from ZMW2,056 million in 2022, due to higher sales volumes and an improved product mix, primarily cable and wire sold in USD.
  • Depreciation of the Zambian Kwacha against the USD contributed to higher revenue. However, this was partly offset by lower copper prices in the 2023 financial year compared to the prior year.
  • Operating profit increased to ZMW113 million, due to higher sales volumes and improved gross profit margins resulting from a favourable sales mix.
  • Foreign exchange loss amounted to ZMW50 million due to the weaker Zambian Kwacha to USD exchange rate.
  • Finance costs increased by 79% to ZMW32.5 million, due to a weakening Kwacha and increasing interest rates.
  • Net cash position improved to ZMW203 million, largely due to improvements in working capital, but gearing ratio remains a challenge at 75%.
  • The company has a substantial USD-denominated net foreign liability, making it vulnerable to any adverse movement in the Kwacha against the USD.
  • Earnings per share for 2023 was ZMW0.95, a significant improvement from the prior year’s loss per share of ZMW0.27.

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About Metal Fabricators of Zambia Plc. (ZAMEFA.zm)

Metal Fabricators of Zambia Plc. (MFZP) is the premier metalwork company listed on the Lusaka Securities Exchange. The company has experienced rapid growth, becoming the leading player in its field in Zambia, with a significant presence in the Central African region.

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