Proplastics Limited closed the 2025 financial year with broad improvements across key financial and operational metrics, demonstrating resilience in a challenging operating environment marked by liquidity constraints and power disruptions.
Group revenue rose 11% year-on-year to USD22.78 million, supported by a 9% increase in sales volumes to 7,549 tonnes. Gross profit advanced 23% to USD7.49 million. Profit before tax grew 21% to USD1.99 million, while profit for the year increased 16% to USD1.39 million. While revenue increased by 11% for the year, overheads grew at a faster rate of 22% to USD5,192,617. This indicates a need for the company to align its cost structure with revenue growth to protect margins and improve operational efficiency.
Earnings quality also improved. EBITDA stood at 16% of revenue, up from 15% in the prior year, and cash generated from operating activities rebounded strongly to 11.6% of revenue compared with -1.4% previously. Basic earnings per share increased to 0.53 cents from 0.46 cents, and the Board has proposed a final dividend of 0.20 cents per share, up from 0.12 cents.
The Group’s balance sheet strengthened further. Total assets reached USD24.7 million, with the current ratio improving to 2.07:1 from 1.58:1 and the quick ratio rising to 0.86 from 0.52. Debt-to-equity fell sharply to 5.1% from 14.2%, giving Proplastics headroom to fund both working capital and future capital expenditure. Return on capital employed moved up to 11% from 10%, while return on assets increased to 9.2% from 7.7%.
Presenting the results, Chairman G. Sebborn noted that tight fiscal discipline and high interest rates kept local currency liquidity constrained throughout 2025. Power disruptions continued to affect efficiencies, though investment in solar backup helped limit the impact.
A slowdown in government-funded projects in the second half was offset by resilient private sector activity, with ongoing infrastructure investment supporting trading momentum. Monetary policy interventions contributed to relative exchange rate stability, but local currency scarcity kept the economy heavily dollarised. Export sales were limited to 2.7% of turnover due to regional competitive pressures and the 30% foreign currency surrender requirement.
Looking ahead, Proplastics anticipates growth across all business segments, supported by rising infrastructure investment and a more supportive operating environment. Sebborn highlighted that purchasing power has become increasingly decentralised and product demand more segmented, requiring sharper strategic positioning. The company plans to leverage investments in capacity and production efficiency to meet a changing market.
While regional export opportunities remain, competitiveness is constrained by the surrender requirement, and the company intimated that it will pursue exports selectively. The company is also monitoring risks from Middle East tensions, which could disrupt raw material supply chains and energy prices. In the short term, adequate raw material stocks have been secured, and mitigation strategies are being developed with suppliers to protect margins.
The recent directive that payments to government and quasi-government entities will be in ZWG presents a new challenge for the value chain. The company stressed that continued alignment of fiscal and monetary policy, together with guaranteed access to foreign currency, will be critical for ZWG stability.
The company announced the appointment of Farai Tapera Blessmore Machodo as Finance Director, effective 1 March 2026.
The final dividend of US 0.20 cents per ordinary share in the capital of the company was declared.
