ART Holdings Limited (ARTD) intends to complete the disposal of non-core assets this year to enhance liquidity, restore profitability and enforce strict cost control across operations.
The group will also relaunch its Softex tissue operations in Harare this month, following the successful relocation and installation of equipment from the Kadoma Mill that was closed.
Additionally, ongoing product innovation, particularly the successful launch of the EV10 pen, is anticipated to boost momentum in key segments.
“Key priorities for the year ahead include completing non-core asset disposals to unlock liquidity, restoring profitability, maintaining strict cost discipline and leveraging the Group’s strong brands to regain market share.
“We are confident that Government reforms will continue to support a conducive operating environment, including stronger enforcement against illegal imports and counterfeits, encouragement of import substitution and local procurement and broader macroeconomic stability,” the company said in its update for the year ended 30 September 2025.
The group recorded turnover of US$28,3 million, 17 percent below the prior year.
Overall volumes declined by five percent, reflecting the impact of reduced prices implemented to protect market share prior to Statutory Instrument (SI) 34 of 2025, ongoing liquidity constraints and intensified competition from imports.
Gross profit margins declined by 10 percent and the Group recorded an operating loss of US$0,8 million.
It noted that a loss after tax from continuing operations of US$1,4 million, coupled with a US$2,2 million loss from discontinued operations, resulted in a total comprehensive loss of US$3,5 million.
ARTD countered the difficult trading environment with disciplined cost management, achieving a 26 percent reduction in operating expenses, a key factor in limiting deeper losses and laying a foundation for recovery.
“Cost containment initiatives across the Group delivered a 26 percent reduction in operating expenses. Liquidity preservation and operational realignment remained key priorities, with capital expenditure limited to essential upgrades.” – Herald
