AECI fails to declare dividends to shareholders

AECI Mining Explosives PLc’s has failed to declare dividends to its shareholders, following 326% loss before taxation recorded at K25.6 million, compared to K11.3 million profit in 2025.

According to the report, net loss before taxation for the period included K3.6 million foreign exchange gains compared to FX losses of K6.5 million for the same period in 2025. Further, the company’s revenue during the six-months period ending 30 June was recorded at K455.3 million compared to K528.3 million with the 13.8% decrease attributed to a drop in export sales by 33.7% in the first half of 2026 compared to 2025.

Additionally, sales to local customers reduced to K368.9 million which is a decrease of 7.3% compared to 2025 which was recorded at K397.9 million. However, the revenue generation in the six- month’s period to June 2026 increased by 25% in US dollar terms compared to the same period in 2025 Further, due to the 33.7% decrease in export sales in the first half of 2026 the Board of Directors did not declare any interim dividends.

Zambia Business Times-ZBT conducted an interview with a broker whose name remains withheld who attributed the decrease in the company’s revenue due to the Kwacha appreciating against the US dollar.

“For AECI are affected by the exchange rate performance, because if the Kwacha is not performing well the company tends to generate more revenue, but in cases where the Kwacha gains against the US dollar the company’s revenue is affected in dollar terms,” said the broker.