MBABANE – Nkonyeni Pre-Cast Limited (NPC), one of the companies listed on the Eswatini Stock Exchange, has reported a 7 per cent decline in revenue for the financial year ended June 30, 2025.
This reflected what the company described as a challenging trading environment for the construction and manufacturing sectors in the Kingdom. NPC’s revenue fell to E47.1 million from E50.9 million recorded in the previous financial year.
Despite this reduction in topline performance, NPC managed to maintain its gross profit level, signalling internal efforts to stabilise operations and improve production efficiency. The company reported a gross profit of E22.39 million, virtually unchanged from the E22.29 million recorded in 2024.
This has resulted in a stronger gross profit margin of 46 per cent, up from 44 per cent in the prior year, which management attributes to cost control and operational discipline.
However, the group still posted a net loss of E2.79 million, marginally lower than the E3.29 million losses reported in 2024, thereby narrowing the loss position and reflecting the company’s gradual move toward recovery.
NPC noted that the year under review was defined by persistent cost pressures, fluctuating demand and tight liquidity conditions across the construction sector. These conditions affected many domestic manufacturers, contractors and suppliers, particularly those reliant on large-scale infrastructure projects and property development cycles.
Despite these headwinds, the group emphasised that it preserved gross profitability and improved operational efficiency through disciplined cost containment. Distribution expenses declined significantly from E5.25 million to E2.46 million, indicating a restructuring of logistics and route-to-market strategies.
However, operating expenses rose modestly from E20.49 million to E22.09 million over the same period, driven primarily by administrative overheads, inflationary cost adjustments and staff-related expenses.
This resulted in an operating loss of E1.91 million, an improvement compared to the operating loss of E3.14 million recorded last year. After accounting for finance costs, the group closed with a loss before tax of E3.59 million.
The company noted that its focus remains on long-term value creation rather than short-term performance volatility.
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… cash flow movements reflect tight operating conditions
MBABANE – Cash flow from operating activities recorded an outflow of E2.57 million, compared to an inflow of E3.76 million in the prior year.
This shift reflects the combined effect of lower revenue, production-related cash expenses, and interest payments.
Net financing activities contributed a positive E3.55 million, supported by the issue of additional shares and drawdown of borrowings. This helped offset cash outflows and maintain business continuity.
By year-end, the company’s cash position improved slightly, with cash and equivalents at negative E5.86 million versus negative E6.63 million the previous year.
Meanwhile, among notable operational achievements for the year, NPC commissioned a new chemical solutions blending plant, enhancing production capacity for water-treatment products. This positions the company to diversify revenue across both industrial and household segments.
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… acquires 90% stake in AT & T Quarries
MBABANE – After the reporting period, NPC acquired a 90 per cent stake in AT & T Quarries (Pty) Ltd, a long-standing raw materials supplier to the company.
The acquisition adds approximately E70 million to group assets and includes a loan liability of E15 million.
Management stated that this acquisition was a strategic move to secure raw materials, stabilise input costs and strengthen long-term supply chain control – an increasingly critical factor for domestic cement and precast producers affected by global and regional price fluctuations.
NPC further acknowledged that negotiations are ongoing to expand equity interests and raise further capital to support growth initiatives and strengthen the balance sheet.
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