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Border Timbers said yesterday it recorded a 14 percent jump in net profit to RTGS$4,4 million for the eight months ending February 2019, compared to the same period in 2018. The firm’s main products are timber and poles.
In a trading update, the Zimbabwe Stock Exchange-listed firm said increased sales had seen its revenue surge to RTGS$16,4 million from RTGS$14,3 million.
“Lumber production is lower compared to same period prior year due to low production in the months of December 2018 to February 2019 at one of our sawmills caused mainly by the general power outages,” the firm said.
“However, sales volume is higher due to increased demand on the local and export markets.”
Border Timbers said there had been a decline in both production and sales of treated poles due to a slowdown in demand.
“Revenue saw positive improvement compared to prior comparable period mostly driven by better lumber sales,” said the Manicaland based company.
The firm, whose plantations were also devastated by Cyclone Idai in March, said it was still assessing the damages caused.
The plantations sit on nearly 48 000 hectares of land.
Cyclone Idai, which originated from Mozambique, hit eastern Zimbabwe hardest, killing hundreds of people and destroying homes, businesses and infrastructure which government has said required over US$600 million to reconstruct.
“A full report on the likely consequences will be provided in the next update,” Border Timber said. — New Ziana.
Online Reporter