Listed pipe manufacturer Proplastics Ltd has reported a 50% jump in revenue for the year to December 31, 2018 on the back of increased sales.
Total revenue amounted to RTGS$24.09 million as sales volumes rose by 5% to 5,261 tonnes.
Proplatsics’ overheads were 45% higher at RTGS$3.98 million, but EBITDA still firmed to RTGS$5.71 million (with an EBITDA margin of 24%) from RTGS$2.91 million during the prior comparable period.
The manufacturer recorded net profit of RTGS$3.51 million compared to RTGS$1.36 million during Fy2017.
Total capital expenditure of RTGS$5.49 million was utilized towards the new factory, distribution trucks as well as an injection moulding machine.
The factory upgrade will increase production capacity by at least 99% to 32,000 tonnes per annum from the current 8,000 tonnes.
Briefing analysts this week, chief executive Kuda Chigiya said the construction work should be completed by the second half of this year.
Return on Capital Employed at 35% was stronger than 19% recorded during F2017.
Going forward, management expect sales to be driven by civils, merchants, mining, exports, borehole casings and irrigation segments.