Cable maker CAFCA has reported a 36 percent surge in raw material costs year-to-date driven by global supply chain shocks.
The Zimbabwe Stock Exchange-listed firm said it recorded a year-to-date revenue increase of 31 percent on prior year on the back of “volume growth and price adjustments made in sympathy with escalating raw material costs, which were up 36 percent on a year-to-date basis compared to prior year”.
The third quarter volumes were up by 32 percent compared to the same period prior year, a performance CAFCA said reflected “improving trading conditions despite escalating costs of raw materials emanating from the supply chain shockwaves”.
The Middle East conflict has caused severe disruptions in energy and shipping through the Strait of Hormuz, causing sharp rises in raw material costs, such as plastics, metals, and agricultural inputs globally.
CAFCA said its sales volumes have risen 20 percent year-to-date, with local volumes and exports increasing 21 percent and eight percent respectively on the back of stable operating environment.
“Profit before tax has been 147 percent ahead of prior year driven by the improved operating leverage, influenced by the cost containment measures against supply chain induced inflation,” the company said.