Tinaye Agere
Michael Tome
PROPLASTICS says it is optimistic about improved product availability and a potential increase in production volumes during this year’s final quarter, driven by the recent installation of new equipment.
While giving the firm’s trading performance for the nine months to September 2024, Proplastics chairman Mr Gregory Sebborn, said the new equipment installed in the last quarter is expected to enhance the availability of specific product ranges, thereby facilitating a boost in overall production volumes.
This initiative aims to ensure that the factory can promptly process all customer orders.
“The installation of new equipment in the last quarter to augment certain product ranges will improve product availability and increase volumes in the last quarter,
“In addition, the impending rainy season is expected to catalyse a surge in project completions, benefitting our fourth quarter performance,” said Mr Sebborn.
This comes as the company recorded a modest decline in sales volumes, which fell by four percent year-on-year, to 4 800 tonnes.
The decline has been partially attributed to a strategic shift in Government priorities, particularly the increased focus on road infrastructure rehabilitation projects, leading to a decline in water and sanitation initiatives.
In terms of financial performance, Proplastics reported a revenue total of US$14,5 million for the period, translating to a 10 percent decline from the previous year’s revenue of US$16,163 million.
This decrease is consistent with the reduction in sales volumes and the overall profitability levels for the group which also suffered in comparison to the prior period.
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