Amalgamated Regional Trading (ART) Holdings reported improved performance and stronger revenue for the six months ended 31 March 2026, although the group remained in the red before tax due to a loss booked on the disposal of discontinued assets.
The diversified manufacturer, whose operations span batteries, stationery and timber products, reported a six percent increase in revenue to US$14.3 million from US$13.5 million in the comparable period, while overall sales volumes rose five percent.
Gross profit margin improved to 35 percent as cost reduction measures began to take effect.
The group posted a loss before tax of US$275,000, compared with a profit before tax of US$67,000 in the same period last year.
Management attributed the result largely to a US$468,000 loss arising from the disposal of the discontinued Mutare Mill properties, a move aimed at improving liquidity and reducing legacy costs.
After an income tax credit, ART reported profit after tax from continuing operations of US$560,000, while total profit for the period stood at US$431,000 after accounting for discontinued operations.
Acting chairman Mike Oakley said the company had made steady progress despite difficult trading conditions across its regional markets.
“The group has made progress in stabilising its core businesses and positioning them for sustainable long-term growth despite a challenging market environment,” Oakley said.
He said management had focused on preserving cash, improving productivity and strengthening the balance sheet while resolving legacy obligations.
Zimbabwe’s operating environment remained constrained by tight liquidity, high utility costs, elevated interest rates and intermittent power supplies, despite improved exchange rate and inflation stability. The company also faced increasing competition from imported and counterfeit products, particularly in its battery and stationery businesses.
ART’s battery division returned to profitability after a stronger second quarter, with local sales volumes increasing 3 percent and exports recovering 10 percent. However, production remained below target because of working capital constraints.
Eversharp, the group’s stationery business, increased volumes by 13 percent, supported by stronger pricing discipline and demand for products such as the EV10 pen range. Meanwhile, Mutare Estates remained the group’s strongest cash generator, with volumes climbing 31 percent on firm demand for structural timber and improved milling productivity.
Looking ahead, Oakley cautioned that challenging conditions were likely to persist.
“The board expects market conditions to remain challenging during the second half of the financial year. Liquidity constraints, cost pressures, import competition and regional market volatility are likely to persist,” he said.
He added that management would continue prioritising cash generation, working capital efficiency and strengthening the competitiveness of the group’s core businesses as it pursues sustainable long-term growth.