1 February 2013

Zimbabwe: Hunyani Posts U.S.$1,2 Million Profit

HUNYANI Holdings Limited, one of the country's largest paper packaging and converting companies, made a US$1,2 million profit before tax for the year ended October 31, 2012. In a financial statement

released yesterday, Hunyani said it successfully re-entered the export markets in the second half of the year, albeit at lower margins and this might have contributed to the profit that was recorded.

The company recorded a profit of US$1,4 million during the same period in 2011.

Overall volumes fell by 10 percent owing to the disposal of non-core operations and weak domestic demand.

The company said its revenue from continuing operations grew by 1 percent from US$45,1 million in 2011 to US$45,5 million.

An operating profit of US$1,8 million was recorded, down from US$2,1 million the previous year.

A 3 percent decrease in volumes of corrugated products was attributed to the poor Malawi tobacco season and the reduction in commercial market share because of equipment performance.

Volumes of flexible products were at par with the prior year as viability challenges experienced by flour producers impacted self-opening bags volumes.

Printopack volumes rose by a significant 15 percent although the division was plagued by high downtime due to the ageing plant which resulted in the division recording a loss.

According to the company, the acquisition of a lithographic printer and the relocation of the division to Harare, which is already underway, is set to enhance performance this year.

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