Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
Proplastics expect a significant uptake in demand for tanks, piping and fittings as major projects, including those under the Government fiscal initiatives commence during the dry season.
Group chairman, Mr Gregory Sebborn in a statement of the Interim Financial Results for the half year ended 30 June 2025 said: “We expect a significant uptake in demand for tanks, piping and fittings as major projects, including those under the Government of Zimbabwe’s fiscal initiatives, commence during the dry season.
“Having invested in boosting our tank production capacity in the third quarter, the business is positioned to capitalise on growing demand for tanks and accelerated sales growth. While electricity supply uncertainties may impact our production process, our backup generator and installed solar capacity will minimize downtime and ensure business continuity during power outages,” he said.
However, he said frequent unscheduled interruptions to electricity supply continue to drive up production costs and consideration is being given to additional investments to mitigate the impact of such interruptions.
“Raw material prices are expected to remain stable throughout the year, and we continue to monitor the environment for possible local supply options given tensions growing in international markets.”
Cost of sales increased by four percent resulting in a gross profit increase of 30 percent to US$3,2 million compared to US$2,5 million in the prior period.
“The profit before tax of US$602 000 was 44 percent above the prior period amount of US$418 000 despite the impact of once-off employee rationalisation costs,” he said.
EBITDA rose to US$1,4 million from US$1 million, while the group’s statement of financial position remained firm with total assets of US$24,7 million compared to US$22,7 million previously.
