By Phiwa Sikhondze
Nkonyeni Pre-Cast Limited (NPC), a prominent force in Eswatini’s concrete and construction sectors has reported a revenue of E50.9 million for the financial year ended June 30, 2024.
NPC’s annual financial results released on October 17, 2024, show gross profits rising from E19.7 million last year to E22.3 million this year.
Despite this, the company reported a net loss of SZL 3.3 million, primarily due to a 36% rise in operating expenses, which reached SZL 20.5 million. Escalating costs, particularly for distribution and materials, contributed to the overall financial impact, with the cost of sales increasing to SZL 28.6 million, up from SZL 23.9 million the previous year.
However, NPC maintained a strong gross profit margin of 43%, underscoring effective cost-management strategies and efficient production processes.
Looking forward, NPC is optimistic about future growth, both locally and regionally. The company completed a successful Initial Public Offering (IPO) on the Eswatini Stock Exchange in November 2023, where it listed 50 million shares.
The company notes that the positive results will help improve its service offering.
“The positive results will enable us to improve services, enhance the quality and range of our services, introduce new offerings, bring innovative products to market, and enhance customer experience by elevating overall satisfaction through enhanced services.”
Furthermore, investor confidence drove a 50% increase in NPC’s share price to E1.50 per share by May 2024. Funds from the IPO will enable NPC to expand production capacity and invest in new technology, positioning the company for future growth.
NPC’s financial position remains strong, with total assets of SZL 69.6 million as of June 30, 2024, compared to SZL 66.9 million last year. The company carries only moderate debt, providing a stable foundation for potential expansion initiatives.
NPC’s quality and industry leadership were also recently acknowledged at the 2024 Eswatini Quality Awards, where the company received the “Product of the Year” award for large enterprises.