Zimbabwe: Stock Shortages Hinder Chemco Expansion

Source from:  The Herald (Harare) 18 January 2008 01/21/2008

Shortages of stock affected plans by listed firm Chemco to expand its retail division although the company says the roll-out is still on. In its results for the year ended October 2007, the diversified agri-chemicals supplier said the expansion programme for Farmarama, TS Timber and ABS would continue subject to availability of supplies. "Only eight out of the 14 planned Farmarama branches were opened during the year. "The roll-out programme was slowed down by the unavailability of stock," the company said. Other units, including Highveld Harvesters and the transport division, continued to perform above expectations despite challenges such as fuel and spare parts shortages, the group said. "The transport division will benefit from the expansion of the fleet during the year," Chemco said. Chemco said Agricura remained a major contributor to turnover with prospects for increased crop chemical volumes expected to be improved through participation in tobacco and horticulture programmes. However, chemical volumes continue to be negatively affected by shortages of foreign currency. In the trading year, the group's turnover, on an inflation-adjusted basis, surged by 227 percent from $842,3 billion to $2,7 trillion. Profit after tax went up to $843,9 billion from $145,5 billion in the comparable period the previous year. The group declared a final dividend $3 575 per share while earnings per share went up from $79,75 to $40 968,90. Enditem