CAFCA Posts 31% Quarterly Sales Volume Growth Desp...

CAFCA Posts 31% Quarterly Sales Volume Growth Despite Year-on-Year Decline

Rutendo Mazhindu – ZimNow Reporter

Cable manufacturer CAFCA Limited recorded a 31 percent increase in sales volumes for the third quarter ending June 30, 2025, compared to the previous quarter.

However, volumes were 14 percent lower than the same period last year and 16 percent behind on a year-to-date basis. Copper cables declined 6 percent, while aluminium conductors and cables dropped 37 percent compared to the prior year.

The company said growth in the construction and manufacturing sectors—up 19 percent and 11 percent respectively—helped drive sales activity, while retail and distribution rose 23 percent due to stronger engagement with distributors and consumers.

In contrast, volumes in the mining sector fell 62 percent, and the utility sector declined 49 percent, largely due to liquidity constraints.

Board Chairman Hilary Mkushi said trading conditions remained relatively stable.

“The trading environment remained relatively stable during the quarter, supported by low month-on-month inflation and limited exchange rate volatility since April 2025,” he said, adding that record tobacco output and stronger gold receipts had boosted confidence in infrastructure projects.

Chief Executive Officer Victor Nyakudya noted that policy measures had been supportive but competition intensified.

“The collaboration between industry and government is a welcome development, and CAFCA remains committed to supporting industrialisation through sustainable frameworks.

However, the introduction of S.I. 157 of 2024, which opened the electrical cable market to imports, led to increased competition, eroding margins and volume growth,” he said.

Production was 4 percent lower than last year, although the company said stock levels remain sufficient to meet demand, aided by the commissioning of a new stranding machine that boosted aluminium conductor and cable capacity. Revenue fell 5 percent year-to-date, with copper costs up 15 percent and aluminium costs up 28 percent.

“Due to heightened competition, increased material costs were absorbed into margins, while other operating costs remained largely unchanged,” Nyakudya said.

CAFCA also reported safety improvements, with the Total Recordable Incident Rate dropping to 0.43 from 0.7. Mkushi said the firm expects sales volumes to rebound in line with projected 6 percent GDP growth.

“While CAFCA anticipates a rebound in sales volumes, margin pressure will persist as the company defends its market share,” he said.