Revenue Drop Pushes AECI Mining Explosives Earnings Sharply Lower
AECI Mining Explosives Plc has warned shareholders that its basic earnings per share for the year ending 31 December 2025 is expected to decline significantly compared to the previous year.
In a trading statement issued through the Lusaka Securities Exchange (LuSE), the company said earnings per share are projected to fall between 117% and 137% lower than the prior year.
The company attributed the anticipated decline primarily to a 15 percent drop in revenue in United States Dollar terms. According to the board, the decline in revenue was largely driven by temporary volume fluctuations caused by interruptions from some customers during the year.
The company also cited currency movements as another factor affecting its performance. The Zambian Kwacha appreciated by 3.1 percent against the US Dollar compared to the previous year, which further reduced US Dollar-denominated revenue when translated.
Despite the expected decline in earnings, the company said economic conditions locally and globally appear cautiously positive.
The board noted that new mining projects and changes in ownership within existing mines are signalling potential growth in the sector, while strong copper prices are expected to support customer profitability.
In addition, the company indicated that recent local legislation aimed at supporting suppliers to the mining industry could create opportunities for the business going forward.
“AECI Mining Explosives Plc is well positioned to benefit from the provisions of the new legislation. We shall remain focused on safety, customer integration and innovation to position us well in the future,” the board said.
The company expects its full financial results for the year ended 31 December 2025 to be released through SENS and published in the local press on or around 4 March 2026.
Shareholders have been advised to exercise caution when trading in the company’s securities until the results are officially published.
The trading statement was authorised by Finance Director Warren Pritchard and sponsored by Stockbrokers Zambia Limited.
