Zimbabwe Stock Exchange (ZSE) listed brick manufacturing company Willdale Limited has recorded an upsurge in revenues by 285 percent for the third quarter ended 30 June 2019 despite a tense operating environment.
The company manufactures and markets a range of brick products for the Zimbabwean construction sector. Products include face brick, semi-face brick, common brick and paving bricks for driveways, swimming pool surrounds and garden landscaping.
The increase in revenues was propelled by a 26 percent increase in volumes together with a 204 percent increase in average prices;
“Despite the weak operating environment, revenue for the quarter under review increased by 285 percent compared to the prior year driven by a 26 percent increase in volumes and a 204 increase in average prices.
“Year to date revenue is 124 percent above prior year while year to date volumes are 25 below prior year,” said Willdale in a trading update.
Going forward the company banks its annual financial performance on the fruition of lined up government and other projects for which it is well stocked to meet product demand;
“Several enquiries for government projects, cluster housing, shopping malls and university infrastructure have been quoted for and are under consideration.
“Prospects for the remainder of the financial year will depend on the outcome of these projects that are in the pipeline. There are adequate stocks on hand to cater for these and other projects that may arise,” added Willdale.
The update further indicate that profit for the quarter under review surpassed the prior year with budget expected to suffice for the whole financial year despite the challenging macroeconomic space.
With respect to half year results to 31 March 2019, revenue had again gone up significantly to $9.6 million compared to the prior year comparative of $5.9 million.
Likewise, profit for the year had improved to $8 million compared to a mere $324 144 posted in the prior year
Meanwhile cement manufacturer PPC recorded a 26 to 30 percent decline in sales for the four months’ period ending 30 July 2019, according to an operational update released Thursday by parent company and JSE listed entity PPC Limited.
The period also saw earnings before interest, taxes, depreciation, and amortisation (EBITDA) declining by between 10 to 15 percent.
The company however highlighted its continued commitment on optimising its operations in Zimbabwe and implementing its cash preservation strategy to ensure that the local unit is less reliant on the group but rather self-sufficient.
“PPC remains focused on optimising its local operations and implementing its cash preservation strategy to ensure the business is self-sufficient,” reads the statement.