Zimbabwe Stock Exchange-listed company Amalgamated Regional Trading revenue for the half year ended 31 March increased by 45% to $22 million as compared to the same period last year.
According to the group chairman Thomas Ushe, Gross profit margins improved to 43% from 40% in 2017.
“Gross profit margins improved to 43% from 40% in 2017. An operating profit of $4.2 million was recorded during the period compared to $2 million posted in the prior year.
“The Group posted a profit before tax of $3.9 million as compared to $1.3 million recorded during the same period in 2017, ” he said.
He added that operating expenses increased as a result of the deliberate brand and promotional activities as the Group consolidated its gains in the local market.
“Operating expenses increased as a result of a deliberate brand and promotional activities as the Group consolidated its gains in the local market. Also included in the operating expenses is a provision of $0.5 m for tax penalties that are under appeal in Zambia.
“Chloride Zambia returned to profitability and posted an operating profit of $191,775 compared to a loss of $52,817 in the prior period.
The Paper division recorded an operating profit of $285,016 compared to $51,877 in 2017.
Notably, Kadoma Paper Mills volumes were 16% higher than the prior year,” added Ushe.
According to Ushe, the Softex Tissue business continued to perform well and posted an operating profit of $331,298 and volumes increased by 11% while Eversharp posted an operating profit of $931,627 compared to $519,965 in 2017 on the back of a 70% increase in regional sales.