PLASTIC pipe manufacturer Proplastics Limited\u2019s profit after tax more than trebled to nearly US$520 000 in the year ended December 31, 2023, on the back of a huge cut in finance costs which went down by 85%.<\/p>\n
In the comparative 2022 period, Proplastics posted a profit of US$164 482 with finance costs amounting to US$686 304 during the period.<\/p>\n
However, for the period under review, the firm\u2019s finance costs dropped to US$103 847.<\/p>\n
The drop in finance costs comes as the firm has now adopted the greenback as its reporting currency owing to the volatility of the Zimbabwe dollar had lost over 700% of its value during the period under review.<\/p>\n
\u201cTurnover for the full year grew by 22% to US$21,3 million from US$17,4 million in the prior year. The growth was underpinned by a 22% increase in sales volumes compared to prior year,\u201d Proplastics board chairperson Gregory Sebborn said, in a statement accompanying financial year results for the year ended December 31, 2023.<\/p>\n
\u201cThe contribution from the recently commissioned new plant was significant and should continue anchoring sales volumes going forward. Exports sales recorded a 102% growth, with a contribution of 11% to total sales. The group secured lucrative contracts in the region some of which will continue into the new financial year.\u201d<\/p>\n
Sebborn said the cost of sales rose up by 47% with gross profit margins dipping 13%, on the back of reduced selling prices in the face of competitive pressures in the market.<\/p>\n
The drop was also attributed to the firm aligning its business costs to United States dollars as a functional currency.<\/p>\n
\u201cCertain elements of cost of sales, for instance electricity tariffs, rose sharply during the year under review. Gross profit for the group was US$6,4 million, compared to US$7,3 million in the prior year,\u201d Sebborn said.<\/p>\n
\u201cOverheads fell 4% from the prior year. Profit before tax of US$1,4 million was significantly higher than the prior year figure of US$893000. EBITDA was US$2,5 million, up from US$2,2 million in the prior year.\u201d<\/p>\n
However, the statement of financial position reduced slightly with total assets amounting to US$22,8 million compared to US$24,6 million in the prior year as the group used available resources to reduce its liabilities, in particular foreign obligations.<\/p>\n
\u201cThe valuation of property, plant, and equipment for the purposes of conversion to a US$ functional currency was carried out using United States dollar-based inputs at the date of conversion,\u201d Sebborn said.<\/p>\n
\u201cThe prior year figures were restated accordingly. The current ratio closed the period at 1,37, which is an improvement from 1,11 in prior year.\u201d<\/p>\n
The gearing ratio remained manageable at 1,5%, thus providing room for the group to leverage borrowings to fund operations.
\nhttps:\/\/www.newsday.co.zw\/business\/article\/200024853\/proplastics-profit-trebles-to-us520-000<\/p>\n","protected":false},"excerpt":{"rendered":"
PLASTIC pipe manufacturer Proplastics Limited\u2019s profit after tax more than trebled to nearly US$520 000 in the year ended December 31, 2023, on the back of a huge cut in finance costs which went down by 85%. In the comparative 2022 period, Proplastics posted a profit of US$164 482 with finance costs amounting to US$686 […]<\/p>\n","protected":false},"author":1,"featured_media":2868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-2867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-updates"],"_links":{"self":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts\/2867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2867"}],"version-history":[{"count":1,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts\/2867\/revisions"}],"predecessor-version":[{"id":2869,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts\/2867\/revisions\/2869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/media\/2868"}],"wp:attachment":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}