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.