Zimbabwe Stock Exchange listed packaging manufacturer, Nampak Zimbabwe Limited has called for the implementation of policies that solve the underlying economic problems saying the current contraction could impact on the manufacturing output in 2019.
According to the group financial results for the year ended 30 September 2018, the difficulties currently being experienced in the economy have made business more challenging than at any time in the recent past.
“The difficulties currently being experienced in the economy have made business more challenging than at any time in the recent past. Domestic inflationary pressures are building up and are likely to erode some of the consumer demand gains made in the past year.
“Unless appropriate policies are implemented that resolve the underlying economic problems, it is possible that in the year ahead there may be a contraction of the economy, which could impact on manufacturing output,” reads the report.
Meanwhile the group revenue for the year increased by 21.3% to $116,8 million as compared to $96,3 million which was recorded during the same period last year.
The group said this resulted in an increased operating profit of $14,5 million as compared to $7,6 million recorded last year driven by both volume growth and tight cost control.
They added that tight control over inventory and trade receivables, combined with a significant increase in trade payables primarily due to committed inventory purchases funded by the controlling shareholder on a trade loan basis contributed to year-end cash balances accumulating to $84,5 million.