Chronicle Editor
Sikhulekelani Moyo, [email protected]
LISTED conveyor belt manufacturer, General Belting Holdings Ltd says it has recorded a total volume of 455 metric tonnes for the half year ended 30 June 2024, a 13 percent increase compared to 402 metric tonnes in the same period last year.
The company attributed the volume increase to Cernol Chemicals’ market recovery efforts, which offset the volume losses.
In July 2005 General Beltings was merged with Cernol Chemicals (Private) Limited and was renamed GB Holdings Limited on 6 August 2007.
In a statement accompanying the company’s unaudited abridged financial results for the period under review, the group chair Mr Tichaona Mabeza said Cernol volumes at 328 metric tonnes increased by 64 percent from the 199 metric tonnes recorded in the comparable period.
“The total turnover at ZWG 22 million was 15 percent below the comparable period’s turnover of ZWG 26 million due to mixed fortunes of both divisions,” said Mr Mabeza.
“General Beltings first quarter performance was buoyed by energy sector orders carried from the prior year. However, in the second quarter, demand plummeted due to the softening of platinum prices which affected downstream demand for conveyor belts.
“The consummation of quasi-institutional tenders was in abeyance due to uneconomic pricing limitations associated with the new currency measures.”
He said the gross profit at ZWG 11 million decreased by 22 percent in tandem with reduced turnover and low overhead recoveries.
Operating costs at ZWG 11 million were 33 percent below the comparable period’s ZWG 16 million attributable to cost reduction initiatives targeted at aligning costs with reduced revenue key markets in the mining sector.
“Increased dollarisation in the economy and United States dollar imported inflation exerted pressure on utility costs were cushioned by improved in process efficiencies,” said Mr Mabeza.
“A resultant operating profit of ZWG of 14 million was a 40 percent increase on the comparable period’s ZWG 10 million.”
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