Cables manufacturer, CAFCA Limited reported an 8% decline in sales volumes for the year ending September 30, 2025, driven by a 32% drop in export sales amid ongoing challenges in the export market.
Despite this, revenue rose 56% to US$39.5 million, largely due to exchange rate fluctuations, though it fell 3% in real terms. Margins shrank by 50%, resulting in a profit after tax of US$1.9 million, down from US$5.8 million last year. The volume decline was also linked to reduced utility uptake (8%) and slowdowns in retail, distribution, and commercial segments. Production dropped 4% in line with lower volumes.
Operationally, CAFCA improved raw material optimization, increased equipment utilization to 80% (up from 70%), and enhanced power stability (up 2%), with a 1.18MW solar plant installation underway. To mitigate revenue losses, the company reduced staff costs via a rationalization exercise and invested in technology. However, the market faced heightened competition following Statutory Instrument (SI) 157 of 2024, which allowed cheaper imports of low-quality cables.
The board declared a dividend of US$2.80 per share, down from US$4.90 in 2024. CAFCA anticipates a stable macroeconomic environment and will focus on building a resilient business model to navigate external challenges.
