The Zambia Consolidated Copper Mines-Investment Holdings Plc (ZCCM-IH) have revealed that it recorded a turnover of K61 million in 2018 as compared to K95 million in 2017.
ZCCM-IH Chief Financial Officer Chilandu Sakala says compared to a profit of K848 million in 2017 it recorded an operating profit of K47 million in 2018.
Speaking during a media briefing in Lusaka yesterday, Mrs Sakala attributed this to increased competition in the lime market and technical challenges faced by its subsidiary, Ndola Lime.
“The turnover represented a 36 percent reduction in Revenue due to increased competition in the lime market and technical challenges faced by Ndola Lime PLC, “ she said.
Mrs Sakala disclosed that said a 95 percent decline in operating profit was recorded owing to decrease in copper price participation income from K719 million in 2017 to K360 million in 2018.
The K360million recorded this year was an additional default interest awarded by the court on the Konkola Copper Mines PPI receivable, she explained.
A 464 percent was recorded in Share of Profit of Equity Accounted investee driven by improved production volumes and copper prices during the year.
The group then reported a profit before tax of K603 million as compared to 1,244 million in 2017 and a profit for the year of K3 million as compared to K729 million in 2017.
Mrs Sakala attributed the improvement in the profitability to improved performance in investee companies due to what she said continued upsurge in copper prices during the year.
She noted that the group’s share of profit of equity accounted investees was K689 million while 2017 recorded a loss of K189 million.
And speaking at the same event, ZCCM-IHY Chief Executive Officer Pius Kasolo revealed that the holding company has developed a new strategic plan for the period 2018-2023 in order to respond to the competitive operating environment and to sustain growth and value extraction.
Dr Kasolo said the plan will ensure consistent dividend pay out to shareholders.
He also revealed that a final dividend of K0.61 per share for the 2018 financial year adding that the total dividend payout for the same is approximately K98 million, representing 26 percent of distributable profits.
The dividend yield is based on the current Lusaka Securities Exchange share price of K8.50 is 2.14 percent.
First the group profits was down due to low cooper prices then the investee share profit in companies was up due to higher copper prices.
It’s hard to believe anything which comes from this country
Probably LT reporting, typical of financial reporting skills among our journalists, rather “…difficult to believe anything which comes out of this country….”. Anyway, the actual financial statements are available for scrutiny, they will certainly be displayed in the national print media.
Probably LT reporting, typical of financial reporting skills among our journalists, rather THAN “…difficult to believe anything which comes out of this country….”. Anyway, the actual financial statements are available for scrutiny, they will certainly be displayed in the national print media.
this is scary
ZCCM-IH will be history soon if this attitude of giving excuses continues. Ndola Lime is finished, and there is nobody they can hide this from. Why not bring light whatever the real problem is, may someone somewhere might have a solution.
Start developing new copper mines. We have too many mine technocrats that were trained by ZCCM we can tap from. Find equity partners to provide funds and boom we are back to the copper days. We cant have all mines in foreign hands.
Yet people are calling for mines to be nationalised, you can’t put caders with no business acumen to run big conglomerates.
Chalapa, who said nationalization? Read before you exhibit your ignorance. I talked about starting new mine.
Maybe you haven’t been following what’s been happening in Z haven’t you heard the cries from some sections of society saying ley them leave will run them ourselves. Take a chill pill this has nothing to do with what you posted
A drop in turnover!! When the profit has drpopped from K800+ million to K80million…how can these directors be in the job? Only in Zambia…Anyway I am not surprised this PF govt has been borrowing left right and centre from ZCCM for loss making IDC companies like KTC, Zambian Airways, Ndola Lime
This entity wants to be in every business in Zambia in the name of investiments. If those businesses they invest in face difficulties, they hit the bottom hard. This business is extremely weird or you have serious siphoning or misappropriation let alone misappropriation of funds. Improper analyses on return on investment in different portfolios can be put to test.