Home » Industry » Hunyani Records 7 Percent Decline in Revenue

Hunyani Holdings recorded a 7 percent decline in revenue to $40,4 million for the 11 months to September 30 due to its sales mix. The group said volumes fell 4 percent largely due to the eleven month reporting period although the tobacco and export sectors performed gly. “There was a positive contribution from the joint venture company, Softex Tissue Products (Private) Limited,” the group said.

Profit from operations rose to $1,9 million from 1,2 million last year while operating profit was lower at $1,7 million compared to $2,5 million the prior year, which was largely attributed to gains from property disposals.

Total comprehensive income attributable to members was at $1,3 million compared to $8,5 million for the prior year, which was realised mainly from revaluations of property, plant and equipment. The group capital expenditure during the period under review fell to $0,8 million from $2 million last year. Most of the capital expenditure went towards plant and machinery upgrades.

Cash resources for the period were up at $4,5 million compared to $3,4 million during the same period last year.

In terms of operations the group said corrugated products volumes fell by a marginal 2 percent due to increased exports and tobacco packaging.

“Cartons and labels domestic volumes were depressed due to reduced demand from major customers. Flexible products volumes, despite the larger tobacco crop, were lower than prior year due to increased competition,” the group said.

Going forward, Hunyani said it was now part of the enlarged Nampak Zimbabwe Group that will focus on expanded packaging opportunities in Zimbabwe and the region.

This followed the attainment of all regulatory approvals that were needed to finalise the merger of CarnaudMetalBox, Megapak and Hunyani Holdings into Nampak Zimbabwe Limited and shareholder approvals given at an Extraordinary General Meeting on August 21.

Source : The Herald