Metal Fabricators of Zambia Plc Reports 36% Revenue Increase to ZMW 1,396 Million for 9M24

Published On: August 7, 2024Company: Metal Fabricators of Zambia Plc. (ZAMEFA.zm)
What key factors contributed to the increased revenue of Metal Fabricators of Zambia Plc. in the period under review?
The increased revenue of Metal Fabricators of Zambia Plc. was primarily driven by depreciation of the Zambian Kwacha against the USD, increased sales volumes, and an improved gross profit margin due to a more favourable sales mix.

Summary of Metal Fabricators of Zambia Plc. HY2024 Interim Report

  • The revenue of Metal Fabricators of Zambia Plc. saw a 36% increase to ZMW 1,396 million compared to the previous year.
  • A significant portion of the company’s revenue was generated in USD, which resulted in higher revenues due to depreciation of the Zambian Kwacha against the USD.
  • Increased sales volumes also contributed to the revenue hike.
  • The operating profit rose to ZMW 83 million due to improved gross profit margins, favourable sales mix, depreciation effect of the Zambian Kwacha against the USD and higher sales volumes.
  • The company managed to minimize its net foreign liability position which led to the reduction of foreign exchange loss for the period to ZMW 24.1 million.
  • Finance costs increased by 38% to ZMW 20.1 million primarily due to the weakening of the Zambian Kwacha against the USD which impacted the USD interest incurred on the company’s funding.
  • The Company’s cash position at the end of the first half of the fiscal year saw considerable improvement with a positive net cash position of ZMW 167 million compared to ZMW 35 million in the prior period.
  • The earnings per share for the review period was ZMW 1.21, indicating better financial performance as compared to the prior period loss per share of (ZMW 0.97).

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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.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

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