• Fri. Apr 19th, 2024

ART posts 9% drop in battery volumes on exchange rate movements

By Stephen Chandisareva

HARARE – Amalgamated Regional Trading (ART) says its battery volumes for the first four months of the year declined 9% owing to exchange rate movements.

This comes as the challenging macroeconomic environment continues to constrain disposable incomes.

“It’s been a difficult start of the year; we have registered volume declines in our battery business up to January, and we are sitting on negative 9 percent in batteries.

“This has been largely due to a decline in exports into our anchor market, Zambia, where our sales have been affected by movements in exchange rates and therefore increased demand in the market.

“The general slowdown has not spared our other export markets, including Malawi and a bit into Mozambique,” ART Group chief executive officer Milton Macheka told the company’s annual general meeting.

Research firm Morgan & Co recently warned that improved electricity supply will slow battery demand.

“Although the improved electricity supply from the Hwange and Kariba station alleviates production risks, we note that a substitution effect will slow demand for batteries,” it said.

ART closed Thursday’s session flat at $217.00.

By ETimes

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