Dannex Ayrton Starwin Plc makes rebound - Posts GH¢3.61m profit in first half
Dannex Ayrton Starwin Plc has made a rebound in the first half of 2023 by posting a profit of GH¢3.61 million during the period.
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This compares to a loss of GH¢1.79 million in the first half of 2022.
This also comes after the company recorded a loss of GH¢3.45 million for the 2022 financial year, a development which was purely due to the depreciation of the cedi against major foreign trading currencies.
Last year was a difficult year for many other companies, particularly those that depended on imported raw materials to produce for the market.
Speaking in an interview with the Daily Graphic, the Chief Executive Officer (CEO) of Dannex Ayrton Starwin Plc, Daniel Apeagyei Kissi, said the company was able to quickly turn its performance around due to competitive pricing, proactive management of forex risks, optimisation of cost, and paying down its oversees payables.
He said the company, based on lessons of the past, would continue to pursue these reforms to ensure that it ended the year with the same impressive performance to excite its shareholders and stakeholders alike.
“Now, we look at our pricing on the market almost on a daily basis, we are looking at the cost of raw material also on a daily basis, and as for the forex rate, we are constantly checking, and these parameters will continue.
“We have learnt some good lessons and as such, we are looking at our business plan constantly. We are being wide awake and acting in good time,” he stated.
He said while the exchange rate volatilities were still a concern and was something that was not within the company’s control, it had done very well in containing the risks so far and would continue to do so in the coming months and into the future.
Riding the storm
The CEO said he was confident that the company would continue to ride out the storm and end 2023 on a positive note.
Commenting on the impact of the exchange rate volatilities on the business, he said the depreciation of the cedi had a huge impact on the company as most of its supplies were oversees and receive their payments in foreign currencies.
“We constantly have to pay supplies and the depreciation of the cedi meant, we will make losses.” he stated.
He said the depreciation of the cedi also affects fuel prices, which increased the company’s cost of operations.
“We have almost 40 vehicles and the amount of money we spend on fuel alone is unbelievable, but we are very confident that we will be able to contain all these risks and the measures we have put in place will serve us well.
“We have put in all the building blocks and if nothing untoward happens, we should be fine,” he said.