Business Reporter
LISTED meat processor Colcom Holdings Limited’s revenue clocked $33 million in the six months period to 31 December 2016, which is an increase of eight percent against the comparative period.
The firm’s financial results for the period indicate the group maintained a growth trajectory despite the difficult macro-economic climate that is characterised by high production costs and a shortage of foreign exchange to procure raw materials on time.
“The group achieved a 23 percent growth in volumes sold whilst maintaining operating expenses at the same level as that incurred in the comparative prior period.
“The group recorded operating profit of $4,78 million, a seven percent growth on the comparative prior period,” reads part of the report, which was issued yesterday.
The group said it generated $2.81 million in cash from operating activities during the period after investing $2.16 million in working capital with an increase of 23 percent in sales volume over the comparative period.
On future prospects Colcom has said it intends to maximise operational efficiencies of pig production by managing the pig herd to optimum levels. It said the single biggest factor in the production of pigs was the cost of maize. Most agro-processing firms had challenges in ordering grain, which was in short supply last year as some struggled to get foreign exchange to import on time.
Colcom, however, hoped that the anticipated good harvest this season would reduce reliance on imported maize as well as demand for foreign currency to import raw materials.