Allied Timbers back to profitability

GIANT timber producer and distributor, Allied Timbers Zimbabwe Private Limited, says it is back to profitability and able to pay dividends as its five-year recapitalisation project, which started in 2019, is now bearing fruits.

The company has commended the Second Republic’s policy reform interventions for enhancing business growth across the country.

In his presentation during the recent Zimbabwe Business Expo held in Bulawayo, Allied Timbers chief executive officer, Mr Remigio Nzou said the company has so far managed to make healthy profits and declare dividends, which is a sign of it being on the right path.

Following the company’s positive financial performance, Allied Timbers, paid a cash dividend of $42,6 million in 2022 to its shareholder, the Government through the then Ministry of Environment, Climate, Tourism, and Hospitality Industry.

“We are so grateful for the support that has been rendered to Allied Timbers by the Second Republic and also by our parent ministry, who provided guidance and has been available when asked to,” said Mr Nzou.

“Over the past five years, Allied Timbers has been aggressively recapitalising using internal resources. The company is one among the few State-owned companies that is consolidating its business sustainably in Zimbabwe and outside the country and we cherish the support that we have received so far from President Mnangagwa, who from 2019 has officiated all our milestones as we turn around the fortunes of this business.”

In 2019, President Mnangagwa commissioned one of the company’s assets worth US$125 000, which motivated them to commission another capital asset worth US$575 000 in the same year.

In 2020, Allied Timbers started construction of a new saw mill, which was then commissioned by President Mnangagwa in 2022. Mr Zhou said the saw mill, which was installed at Cashel Estate in Manicaland, cost US$15 million.

He added that Allied Timbers is targeting to re-plant and re-green their estates. He revealed that in 2021, they planted 2 100 hectares followed by 6 000 hectares in 2022 and this year the company is targeting to plant 5 500 hectares to promote sustainability.

Last year, Allied Timbers said it was targeting to tap into more lucrative supplies within southern Africa and beyond while scaling up value addition to widen its range of products, to meet growing customer needs.

With 10 estates, Allied Timbers has the largest timber resource base, constituting about 60 percent of commercial timber plantations in the country with an employment base of about 1 473 workers.

Allied Timbers Zimbabwe was born out of the Commercial Division of Zimbabwe’s Forestry Commission, the regulatory authority on gazette forest land in October 2007. — @SikhulekelaniM1