Online Reporter
Business Reporter
INDUSTRIAL group GB Holdings says working capital constraints and subdued aggregate demand weighed heavily on production volumes in the year ended December 31, 2025.
The group reported that total output fell by 19 percent to 779 tonnes in 2025, down from 953 tonnes in the prior year.
Management attributed the decline to tighter liquidity and weaker demand across key economic sectors, which limited throughput in both the rubber and chemical divisions.
General Beltings’ rubber division saw volumes drop 21 percent to 301 tonnes (from 379 tonnes) due to softer demand from the energy sector.
However, divisional turnover surged 81 percent to US$2,9 million from US$1,6 million, bolstered by recovering demand from the mining sector.
According to GB Holdings, this performance highlights the resilience of mining-linked industrial demand, which has become a primary revenue driver.
At Cernol Chemicals, volumes fell 17 percent to 478 tonnes from 574 tonnes, as working capital shortages constrained both production and stocking levels.
Turnover for the division remained flat at US$1,363 million.
“Total volumes were 19 percent lower than the comparable period due to working capital constraints and reduced aggregate demand in the economy . . . volumes at the rubber division declined due to reduced demand in the energy sector, while Cernol Chemicals volumes declined due to working capital constraints,” said GB Holdings chairman Mr Tichaona Mabeza in a statement accompanying the results.
Despite lower volumes, group revenue rose 43 percent to US$4,3 million (up from a restated US$2,99 million), supported by an improved product mix and stronger pricing. Gross profit increased by 26 percent to US$1,76 million.
However, operating profit plummeted to US$39,000 from US$1.03 million in the prior year.
The company noted that cost-containment measures helped cushion margins, with total costs declining eight percent to US$1,65 million despite rising dollarisation.
A dividend of US$0,0112 per share was declared on March 27, 2026, for the financial year ended December 31, 2025.
