Published by the government of Zimbabwe
26 October 2009
Harare — DIVERSIFIED food and beverage manufacturer Cairns Holdings Limited's capacity utilisation increased to 35 percent from 5 percent for the year ended August 31 2009.
In a statement accompanying the company's financial results, the group said the implementation of the Global Political Agreement and the dollarisation of the economy added impetus to the company's performance.
The group was buoyed by Cairns Foods, as some of its subsidiaries implemented major product rationalisation programmes as a means of allocating the limited borrowed capital to products with the right margin mix.
"Our major core brands continue to gain shelf space in the market," Cairns said.
During the period under review, group turnover was US$9,9 million incurring a loss of US$1,9 million.
Cairns Foods contributed 80 percent to the turnover.
Management said operations were constrained by limited working capital, which only improved in the last three months of their reporting year.
The board indicated that management would actively implement strategies to take the company profitably into the new year.
"An improved performance is forecast in the ensuing year with the first quarter profitability.
"Demand for the group products is expected to increase from current levels during the festive season -- broadening of the product range will be demand driven," Cairns said.
Meanwhile, the group is probing export markets where its products are likely to have a competitive edge.
Cairns exports into the region, the United Kingdom, United States of America and Sweden.
Apart from Cairns Foods, which manufactures canned vegetables and fruits, snacks, spices and beverages, Cairns Holdings also controls 60 percent of ME Charhon, which makes biscuits, sweets and chocolates and whose other shareholder is milk processor Dairibord Zimbabwe.
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