Chronicle Editor
Senior Business Reporter
Listed rubber and chemicals manufacturer, General Beltings says that driven by the improved order book by local firms, it is gearing up to meet the increased demand for products in the fourth quarter while consolidating its market positioning in the traditional markets as customers substituted imports with locally produced products.
The firm said despite global operational challenges occasioned by ongoing Russia- Ukraine conflict it pursued a strategy of continuously delivering a commensurate value proposition to its customers through a product offering that competes with world players.
In a statement accompanying the half-year results for the period ended June 30, 2022, the firm said it was poised to meet the expected demand.
“The company is poised to meet the increased demand in the fourth quarter driven by an improved order book as local firms continue to appreciate the company’s commensurate value proportion. In addition, activity in the tourism industry is expected to improve given the positive sentiment around containment of potential pandemics like COVID-19 and Monkeypox,” reads part of the financials.
To be in a strong financial position, the board resolved not to pay an interim dividend for the period under review.
“At their meeting on 22 September 2022, the Board considered the need for additional working capital to fund a firming order book and the need to adequately stock raw materials. To that end, the Board resolved not to pay an interim dividend for the period under review.”
Despite the liquidity constraints in the economy, total volumes increased by 21 percent to 500 metric tonnes when compared with the same period prior year’s 412 metric tonnes, buoyed by a 42 percent volume increase at Cernol Chemicals Division.
Total turnover at $669 million increased by 12 percent compared to the $597 million in the same period last year. Turnover growth was a result of volume growth at Cernol Chemicals.
The group added that it consolidated its market position in the traditional markets as customers substituted imports with locally-produced products.
“Total gross profit at $278 million increased by five percent when compared with the same period prior year’s $265 million due to improved throughput and cost containment measures.
“However due to the USD imported inflation in the rapidly dollarised environment, operating costs at $260 million increased by 58 percent when compared with the prior year period’s $164 million. As a result, an operating profit of $24 million was recorded against $104 million of the prior year’s same period,” it added.
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