Trading Update - for the first quarter ended 31 December 2024

CAFCA LIMITED
Incorporated in terms of the laws of Zimbabwe
(Zimbabwe Registration number: 401/1945)
Share code: CAC
ISIN: ZW0009011942
("CAFCA" or "the Company")


Trading Update – for the first quarter ended 31 December 2024


Trading Environment

In the first quarter ended 31 December 2024, we have witnessed industry and commerce
adjusting to various changes, including the September 2024 currency devaluation, reduced
expansionary spending on road infrastructure, increased power disruptions, and a rise in
informal retail.

The market experienced an increase in smuggled products, disrupting value chains and
forcing retailers and manufacturers to adapt rapidly. In addition, this was encouraged by a
shift in trade towards the United States Dollar due to transacting preferences as well as
limited circulation of Zimbabwean Gold (ZWG).

The gold sector experienced a price rally, whilst other commodities saw their average prices
softening during the 2024 calendar year. The relatively stable performance in the mining
sector, buoyed by gold production, was unable to offset the negative impact of the drought
on agricultural output and the weak commodity prices of other minerals on the Zimbabwean
economy.

Operational Update

Despite the shifting trading environment, CAFCA's volumes for the first quarter ended
31 December 2024 grew by 23%, supported by a 74% growth in aluminum volumes
compared to the prior comparative period. The copper-based business grew by 13%
compared to the prior comparative period.

Utilities and commercial business showed substantial growth, with volumes increasing by
187% and 83% respectively, compared to the prior comparative period.

Retail and distribution volumes declined by 25% in the first quarter, compared to the prior
comparative period, due to the constrained trading space influenced by informalization.

Exports dropped by 39% against prior year, due to foreign currency supply gaps in the key
export markets such as Malawi, Mozambique, and East Africa.

In terms of delivery, production was affected by power disruptions and surges, causing
equipment breakdowns. CAFCA, however, managed to meet customer production
requirements. The company continued to engage distributors to maintain high product
availability on the shop floor.

Financial Update

Revenue for the quarter ended 31 December 2024 grew by 29% compared to the prior
comparative period due to volume growth. Trading margins remained under pressure due to
increased industry competition.

Directorate

There were no changes to the directorate during the period under review.

Outlook

The operating environment in Zimbabwe continues to pose challenges, influenced by policy
changes, currency instability and power supply challenges. Whilst it is expected that the
Government will take measures to address these gaps, CAFCA is working to improve its
operational capabilities to constantly compete and meet our customers' needs. To that end,
CAFCA will focus on operational effectiveness to protect margins and drive profitability.


By order of the Board


C. Kangara
Company Secretary

12 March 2025

Directors: H.P. Mkushi (Chairman) V. Nyakudya (Chief Executive Officer) E.T.Z. Chidzonga T. Chigumbu
L. Corte S. Mangwengwende S. Maparura J. Tapambgwa
Date: 12-03-2025 10:40:00
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