Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Proplastics Limited has reported a 12 percent increase in turnover to US$9,6 million in the half-year to June 30, 2025, compared to US$8,6 million in the same prior year period, with export sales contributing three percent.
The company says it expects significant uptake in demand for tanks, piping and fittings as major projects gather pace.
Group chairman, Mr Gregory Sebborn, said the revenue growth was underpinned by a 14 percent rise in sales volumes, reflecting stronger demand across the product range.
“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.
Earnings before interest, tax, depreciation and amortisation (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.
The current ratio strengthened to 1,74 from 1,59, and gearing eased to 11 percent from 14 percent, leaving room to leverage if necessary to support working capital.
The group closed the half-year with cash and cash equivalents of US$235 000.
Mr Sebborn said the operating environment remained relatively stable, with the gross domestic product projected to grow by at least six percent this year, anchored by agriculture and mining recovery.
“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 minimise downtime and ensure business continuity during power outages,”he said.
He, however, warned that frequent unscheduled power cuts continued to drive up production costs, adding that management was considering further investment to mitigate the impact.
“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,” said Mr Sebborn.
Listed on the Zimbabwe Stock Exchange (ZSE), the company is a leading plastic pipe manufacturer, specialising in the manufacture of polyvinyl chloride (PVC), high-density polyethylene (HDPE), and low-density polyethylene (LDPE) pipes, as well as related fittings.
The pipes are manufactured for various applications in irrigation, water and sewer reticulation, mining, telecommunications, and building construction.
