HARARE – Zimbabwe Stock Exchange-listed diversified manufacturer ART Holdings posted a solid financial performance for the six months ended March 31, 2026, recording a 6% increase in revenue as improving sales volumes, stronger pricing discipline and operational efficiencies offset challenging trading conditions.
The group reported revenue of US$14.3 million, up from US$13.5 million in the corresponding period last year, while total sales volumes increased by 5% year-on-year, reflecting improved demand across several of its core business divisions.
The company’s gross profit margin strengthened to 35%, underlining the impact of cost containment measures, operational improvements and disciplined pricing strategies implemented during the period.
The performance signals continued recovery for the diversified industrial group despite an operating environment characterised by constrained liquidity, subdued consumer spending and intermittent power supply disruptions.
Batteries Zimbabwe Returns to Profitability
One of the strongest contributors to the group’s improved performance was Batteries Zimbabwe, which returned to profitability during the second quarter after recording stronger domestic and export sales.
Local battery sales volumes increased by 3%, while export volumes rose by 10% compared to the same period last year, reflecting improving regional demand for energy storage products.
However, management acknowledged that the division’s overall performance remained below expectations due to persistent working capital constraints and production interruptions that affected manufacturing output.
Despite these challenges, ART Holdings expressed confidence that the batteries business is well positioned to benefit from growing demand for energy storage solutions across Southern Africa.
The company is also making progress in resolving production bottlenecks affecting its maintenance-free and industrial battery product lines, developments expected to support stronger earnings during the second half of the financial year.
The improving outlook comes as demand for reliable backup power systems continues to grow across the region amid increased investment in renewable energy and persistent electricity supply challenges.
Eversharp Delivers Volume Growth Despite Competitive Pressures
The group’s stationery division, Eversharp, also recorded improved trading performance during the reporting period, despite operating in an increasingly competitive market.
Sales volumes increased by 13% year-on-year, supported by better pricing strategies and sustained customer acceptance of the company’s product portfolio, including its EV10 pen range.
Management noted that the business continued to face headwinds from the influx of imported and counterfeit products, weak consumer spending and recurring electricity disruptions that affected production efficiency.
Nevertheless, the division maintained positive momentum through tighter cost management and continued product innovation.
Mutare Estates Drives Cash Generation
Mutare Estates remained ART Holdings’ strongest-performing business and the group’s principal cash generator during the reporting period.
The timber business recorded a 31% increase in sales volumes, supported by robust demand for structural timber and related products.
The division also benefited from improved milling efficiencies, operational optimisation and disciplined pricing, enabling it to sustain strong profitability despite broader economic challenges.
The continued expansion of construction activity and infrastructure projects has helped underpin demand for timber products, positioning the division for further growth.
Stronger Financial Position
Commenting on the results, Acting Chairman Mike Oakley said management remained satisfied with strategic decisions taken during the reporting period to strengthen the company’s balance sheet.
“While the disposal was dilutive to reported earnings in the short term, management is satisfied that the transaction strengthens the Group’s financial position,” Oakley said in the statement accompanying the half-year financial results.
The company believes the stronger balance sheet will improve financial flexibility and support future investment in production capacity and operational improvements.
Outlook
Looking ahead, ART Holdings expects improved performance during the remainder of the financial year as production constraints ease and regional demand for batteries continues to strengthen.
Management is also banking on operational improvements across its manufacturing businesses, continued cost optimisation and sustained demand for timber products to drive earnings growth.
Although macroeconomic headwinds, including constrained working capital, electricity supply challenges and competitive import pressures, remain risks, the group’s diversified business model and improving operational performance provide a solid foundation for continued recovery.
The latest results suggest ART Holdings is gradually rebuilding profitability through operational efficiency, stronger pricing discipline and focused investment in its core manufacturing businesses, positioning the company to capitalise on recovering industrial activity and growing regional demand.
