Online Reporter
Michael Tome
Business Reporter
Zimbabwe Stock Exchange (ZSE) listed brick maker Willdale Limited is pursuing various options to raise working capital needed to ramp up output before the end of the production season.
Typically, brick making reaches peak production during the dry season, which runs from June to October.
This is because the rainy season (November to February) can hinder the drying and firing processes, making it difficult to produce bricks efficiently.
In a trading update for the quarter to June 2025, Willdale said that a shortage of working capital hindered the achievement of its production and sales targets in the review period.
As a result, year-to-date extrusion was 52 percent lower than the previous year, while fired production declined by 41 percent for the same period.
Sales volumes also fell by 34 percent, reflecting the decrease in production.
This comes as demand for bricks remains high, driven by rising housing projects in urban and peri-urban areas.
Willdale indicated that it anticipates a business boom due to sustained growth in housing and commercial infrastructure, supported by both government and private sector initiatives.
The company believes this presents significant opportunities for revenue expansion in the short to medium term.
“We are entering a transformative phase in the next quarter with production, sales, and liquidity expected to strengthen significantly as volumes are increased to optimum levels.
“Key to unlocking this growth is the strategic injection of capital for both operational requirements and investment in a modern, high-efficiency production plant,” said Willdale company secretary Mavuto Munginga in the company’s trading update for the quarter to June 2025.
Operationally, in the quarter under review, the company recorded a 45 percent revenue decrease year-over-year, attributable to low production.
On the other hand, average prices for the period rose 10 percent above the prior year, supported by its strategic focus on high-value product lines.
While the common brick segment continues to face competitive pressures, the company’s targeted approach in premium categories has cushioned performance and positioned it for stronger returns going forward.
The brickmaker also highlighted the emergence of new manufacturers in the industry during the period under review, citing that. it further increased competition and the effect on prices and margins.
Online Reporter