adminpercent increase from the US$189 455 recorded in the comparable period last year, attributed to effective cost management initiatives that the firm implemented during the period under review.
NTS’s revenue for the period grew to US$11,3 million from US$6,1 million last year, an 84 percent increase, which the company attributed to improved stock availability backed by reasonable credit terms offered by their key suppliers.
Sales volumes of new tyres grew by 71 percent, while services grew by 40 percent due to improved demand, an expanded distribution network and improvements in supply.
NTS reported that volumes for its Bandag truck tyre retreading factory increased by 53 percent, while those in the Vaculug off road tyres factory increased by a marginal 10 percent over the prior year. Capacity utilisation in the Harare Bandag factory ended the year at 74 percent.
Meanwhile, the number of NTS operating branches increased to seven as at the end of March this year following the reopening of Masvingo and Gweru branches, which were said to have contributed “meaningfully” to the company’s performance in the period under review.
In respect to the outlook period, the company said it is looking to position itself to fully support the envisaged growth in the mining, agriculture, transport and distribution sectors.
NTS also said the growth of the national fleet through the importation of both commercial and passenger vehicles presents further opportunities for the business.
On the other hand, the low barriers to entry, cheap imports and informal traders are expected to intensify the competition in the industry, while anticipated increases in commodity and fuel prices will also have a negative impact on the business.
Online Reporter