Listed brick-maker to ride on construction boom

Sikhulekelani Moyo, [email protected]

LISTED brick-making firm, Willdale Limited has said the company will leverage on the boom in the construction sector which has seen demand for bricks growing during the year under review.

In a statement accompanying Willdale’s abridged financials for the year ended 30 September 2023, the company chairperson Mr Cleophas Makoni said demand for bricks was relatively high throughout the year under review, driven by housing development, construction of educational facilities, and shopping centres.

He however said volumes were 5 percent below the prior year largely due to supply side challenges caused by electricity shortages.

“Key economic fundamentals have remained stable post-year-end, laying a good foundation for a better operating environment in the ensuing year. However, the electricity supply must improve to boost capacity utilisation and efficiencies and put more bricks onto the market.

“We will leverage on the prevailing boom in the construction of houses, commercial buildings, educational facilities, and other infrastructure to improve revenues and profitability in the ensuing year,” said Mr Makoni.

“Efforts to raise funds from existing assets to upgrade production facilities will be enhanced in the new year. Relevant cautionary statements have been issued to the market.”

Mr Makoni said clay crushing capacity was enhanced during the year by investing in a new plant resulting in better product quality.

He said capacity utilisation averaged 75 percent despite electricity supply deficits.

“The board is exploring various options to enhance plant capacity in the short term and intends to leverage on its existing assets to source appropriate funding.

“A programme is under implementation to ensure consistent brick supplies during the rainy season to satisfy growing demand,” he said.

Meanwhile, Mr Makoni said inflation-adjusted revenue for the year totalled $37 billion and was 106 percent above the prior year compared to 18 billion.

He said lower availability of stock as a result of electricity shortages, contributed to a 5 percent decline in sales volumes compared to the prior year.

However, he said Margins were sustained by a favourable product mix which kept average prices at acceptable levels.

@SikhulekelaniM1