Zimbabwean staple, Eversharp has recorded a staggering volume decrease of 71% in pens. Eversharp brand owner Amalgamated Regional Trading Holdings Limited (ART), made this announcement during their trade update for the third quarter ended 30 June 2020. The volume decrease of 71% is in comparison to the same period last year and is associated with restrained economic activity.
In addition, the COVID-19 outbreak worldwide resulted in countries limiting the business, schools and colleges function. Many of which are still closed. Stationery producers such as ART Group have since lost market.
ART Group Company Secretary; A Chingwecha says,
“Eversharp pen volumes were 71% lower than the prior-year as business was affected by the lockdown and uncertainty around the school calendar. The division managed to breakeven during the quarter due to improved process and cost efficiencies.”
Besides Eversharp, ART also owns brands which include Chloride Zimbabwe; Chloride Zambia; Exide Express; Softex Tissue Products and Kadoma Paper Mills amongst others.
The Company Secretary also revealed that the Group’s overall volumes for the quarter declined by 17% compared to the same period last year mainly due to trading restrictions during the lockdown period.
“Export earnings for the quarter decreased by 8 % compared to the prior year. Year to date overall volumes for the 9 months ended 30 June 2020 decreased by 3 %.” Chingwecha says.
“Group revenues for the quarter grew by 132 % in inflation-adjusted terms and 831 % in historical terms as the escalation of costs necessitated significant price adjustments. All business units remained profitable during the quarter despite reduced volumes and increased inflationary pressure on costs.”
ART batteries business sales volumes recovered from a 44 % reduction in April to an overall decline of 6% for the quarter compared to the prior year, according to the Group’s trading update.
“The Paper business continued to rely on imported paper as local collection volumes slumped in line with reduced economic activity. Power supply improved during the period and new lines aimed at increasing the usage of available local waste grades were introduced. Volumes declined by 40 % compared to the same period last year as logistical challenges on imported raw material impacted operations,” says Chingwecha.
“Softex tissue volumes declined by 14 % as a result of the inconsistent supply of raw materials from the Mill and foreign currency challenges. The contribution of hygiene volumes increased to 7% compared to 3 % last year as the company’s diversification strategy continues to show promise.”
“Timber sales volumes for the quarter declined by 57 % due to trade restrictions during the lockdown period, consequently cumulative volumes for the year decreased by 27 % compared to the same period last year. Operations at the estates remained unaffected and sales improved when the lockdown restrictions were eased.” He concluded.
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