Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
General Beltings Holdings Limited anticipates strong recovery this year buoyed by enhanced production capacity, internally generated working capital and a rebound in key economic sectors.
The group is strategically positioning itself to meet expected increases in product demand driven by the improving global and domestic economic outlook.
With the global economy showing signs of recovery and mineral commodity prices on the rise, the company expects improved demand from its industrial clients, particularly in the mining and manufacturing sectors.
The favourable agricultural season in Zimbabwe this year is also expected to boost activity in both the agricultural and hospitality industries, supporting Cernol Chemicals’ ongoing recovery efforts.
General Beltings Holdings Limited manufactures and distributes general-purpose and specialised reinforced conveyor belts, as well as rubber and chemical products.
In a statement accompanying the company’s financials for the year ended December 31, 2024, General Beltings said it was poised to cope with increased demand for its products, underpinned by enhanced production capacity and internally generated working capital funding.
“Strategic partnerships and critical skills retention remain key in the company’s ability to remain competitive in its delivery of a commensurate value proposition to its customers.”
Despite headwinds during the reporting period, General Beltings posted a resilient performance, particularly at the Cernol Chemicals division, which registered volume growth.
At the rubber division, volumes stood at 238 tonnes, representing a 37 percent decline from the comparable period’s 379 tonnes.
This was largely attributed to subdued demand and economic constraints. As a result, turnover for the division fell sharply by 61 percent to ZiG 42 million, compared to ZiG 107 million recorded in the prior comparable period.
In contrast, Cernol Chemicals recorded volumes of 574 tonnes, reflecting a five percent increase from 543 tonnes previously.
The growth was supported by successful market recapture strategies and penetration into new market niches.
However, turnover at ZWG35 million was 19 percent below the prior period’s ZWG 43 million due to heightened price competition in the chemicals sector.
Aggregated group volumes were down 12 percent at 812 tonnes compared to 922 tonnes in the same period last year, a direct result of reduced aggregate demand within the broader economy.
Total group turnover declined by 49 percent to ZWG77 million from ZWG150 million in the comparable period, impacted by both lower volumes and exchange rate-related pricing pressures.
Although gross profit margins declined by 41 percent, weighed down by lower production throughput and an increasingly dollarised cost structure, the group implemented effective cost containment measures.
Operating costs were significantly curtailed, coming in at ZWG46 million, 43 percent lower than the prior year’s ZWG81 million.
These efficiencies translated into an operating profit of ZWG29 million, a notable 322 percent improvement from the comparable period’s ZWG9 million.
Looking ahead, the company is cautiously optimistic.
The combination of improved production capacity, internally generated capital resources, and strategic initiatives places General Beltings in a strong position to benefit from an upturn in demand across its operational segments.
“The recovery of the global economy and the uptick in mineral commodity prices will stimulate demand from the company’s customers.
“In addition, the improved agricultural season will assist in the growth of the agricultural and hospitality sectors that will in turn accelerate Cernol Chemicals recovery efforts.
“The company is poised to cope with increased demand of products, underpinned by enhanced production capacity and internally generated working capital funding. Strategic partnerships and critical skills retention remain key in the company’s ability to remain competitive in its delivery of a commensurate value proposition to its customers.”
