Home » General » Zimpapers Profitable in F13

Zimpapers Newspaper Division again carried the group’s performance in the year to December but losses in the commercial printing division and the broadcasting division saw the group restrict its profit to just $535 955. There was an 8,56 percent growth in the top-line at $44,94 million while gross profit was at $33,13 million from $29,53 million in the comparable year ago period. The operating line was chewed to $1,85 million from $1,33 million in 2012.

Chairman Dr Charles Utete said in his results statement that the increase in gross profit was attributable to the efficient purchasing of critical raw materials especially newsprint and inks.

In the period, the group embarked on a recapitalisation drive where it installed a new Orient X-Cell printing press purchased from India.

It also managed to install a new production and accounting system 4C plus replacing the old Atex and Baan system.

“This is expected to improve the production and the financial reporting processes by providing real time information flow and availability.”

Zimpapers has also received from Italy a refurbished CD102 commercial printing machine to augment the current one at its Commercial Printing Division resulting in a threefold increase in capacity.

This division had been hardest hit by the poor state of machinery where it could not process all the jobs in its order book due to low capacity.

“The new machine is therefore expected to increase capacity, efficiency and quality to the operational performance of the division in 2014 and beyond.”

Overall, chief executive Mr Justin Mutasa told The Herald Business yesterday that the recapitalisation process is almost complete “so we shall soon be reaping the benefits”.

After a 29 percent increase in finance costs to $1,32 million, the pre-tax line came in at $435 910 while the bottom line improved to $535 955 from $62 186 in 2012, an increase of 761 percent. Earnings amounted to 0,09c per share. The group has short-term loans of $4,08 million and $4,09 million in long term.

In terms of the performance of the group’s units, Newspapers division recorded an operating profit of $3,6 million with performance expected to improve in F14 on the backdrop of the full operations of the new press and production systems.

The Commercial Printing Division reduced its operating loss to $500 000 from $1,47 million in the previous year. The division improved its capacity utilisation while it also had a healthy order book. However, it is still affected by huge overheads and a debt overhang which require management’s attention.

The Broadcasting division recorded an operating loss of $197 418 compared to a loss of $636 795 posted in the six months in 2012.

“The product is still developing and hence the existing losses.” However the division is expected to be profitable in 2014.”

Source : The Herald