• Mon. Jul 22nd, 2024

Masimba ex-CEO Malunga Elected Director at Proplastics, Shares Jump

ByETimes

Jun 13, 2024

By Stephen Chandisareva

HARARE – Shareholders of plastic pipes and fitting manufacturer Proplastics on Thursday approved the election of former group chief executive officer of Masimba Holdings Canada Malunga to the company director.

Malunga retired from the position of chief executive officer of Masimba Holdings on 31 December 2023. In 2013, Masimba Holdings underwent a major shift under his leadership when it rebranded from Murray & Roberts (Zimbabwe) Limited.

In 2015, its manufacturing division, Proplastics, was unbundled and listed on the Zimbabwe Stock Exchange.

Accordingly, shareholders also approved a share buy-back scheme. The company has been seeking authorization to repurchase its shares, with a maximum limit set at 10% of its issued ordinary share capital.

This action is intended to enhance shareholder value and demonstrate confidence in the company’s financial position.

For the first five months of 2024, Proplastics sales volumes declined by 60% compared to the prior period last year. Consequently, revenue was flat compared to last year.

Exports retreated by 96%. They are now at 1%, compared to 14% in the prior period.

“This has been caused by the conversion costs in the local currency, which are quite high in US dollars, and electricity, which is quite high.

“Also, we’ve got competition in the local countries that we’re exporting to that are getting favourable terms of trading in terms of their economic environment, which is better than where we find ourselves right now.

“The 25% surrender value that is retained by the authorities when we export, it’s causing a nightmare in terms of how we treat it now in the environment of ZiG,” Proplastics’ chief executive officer Kuda Chigiya told shareholders attending the annual general meeting.

As part of its sustainability initiatives, the company’s half-megawatt plant is poised to provide about 50% of its power needs during the day.

In the outlook, the company’s focus area will be centred on streamlining operations, post-containment, and value preservation.

Proplastics closed Thursday’s session up 7.09% to close at ZiG43.0000c.

By ETimes

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