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Natasha Chamba, Business Reporter
BORDER Timbers Limited says its financial performance for the 11-month period to May this year was severely affected by the devastating impact of Cyclone Idai, which razed through the eastern parts of the country early this year.
In a trading update, the company said lumber production was lower during the period under review compared to the same period last year.
Production at the company’s sawmills was also hampered by power outages, said the firm.
“Lumber production is lower compared to same period prior year due to low production in the months of December 2018 to April 2019 at one of our sawmills, caused mainly by the general power outages and Cyclone Idai devastating effects that occurred on 15 March 2019,” reads part of the update report.
“The knock-on effect of the Cyclone resulted in the Charter sawmill resuming operations in the first week of May 2019.”
Border Timbers said Cyclone Idai negatively affected production and sales into the market as the road infrastructure was destroyed.
However, the company’s revenue during the period under review grew by RTGS$12,9 million to RTGS$30 million from RTGS$19,1 million registered during the same period in 2018.
It’s cash profit before tax during the period also grew to RTGS$6,1 million from RTGS$3,7 million during the comparable period.
“Revenue saw positive improvement compared to prior comparable period mostly driven by improved quality hence better average selling prices on lumber,” said Border Timbers.
The company said despite the devastating effects of Cyclone Idai in the eastern parts of the country, electricity supply has been restored to all Border Timbers operations in affected areas.
The business still faces a challenge with the dilapidation of roads infrastructure linking the Chimanimani operations to markets. The setback would likely persist unless permanent fixes are done before the rainy season commences. Border Timbers is in the business of growing, milling and manufacturing timber from managed plantations. — @queentaurus_zw
Online Reporter