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Kudakwashe Mhundwa
Agro-industrial concern, Boarder Timbers says revenue for the five months to 30 November 2018 grew by 15 percent to $11 million from the previous comparable period on the back of increased growth on the lumber business.
Profit before tax for the period went up to $3,6 million from $2 million a year earlier.
This was on the back of increased production and sales of lumber by 7 percent and 16 percent respectively.
Lumber is a type of wood that has been processed into beams and planks, a stage in the process of wood production. It is mainly used for structural purposes.
“Revenue saw positive improvement compared to prior comparable period mostly driven by lumber sales.
“Lumber numbers reflect positive growth on both production and sales against prior year comparative due to increased demand on the local and export markets,” judicial manager Peter Bailey said in a statement accompanying the group’s latest trading update.
However, the treated poles business declined in sales to 7,237 cubic meters (m3) from 14 717 m3 sales the previous year while production also declined to 6 157m3 from 13 787m3 prior year comparative.
Management said the loss was as a result of the wet spell which was experienced in the first two months of the financial year.
“Treated poles on the other hand reflect a decline in both production and sales due to the wet spell experienced in the first two months of the financial year which resulted in low production.
“The low production had a knock on effect on sales resulting in delays in fulfilling the order book,” said Bailey.
Online Reporter