malvernmugadzikwa
Business Writer
Plastics product manufacturer Proplastics says sales volumes for the 9 months to September 2024 declined 4 percent to 4,800 metric tonnes compared to the same period last year.
The company’s chairperson, Gregory Sebborn, however, is optimistic that the impending rainy season is expected to catalyse a surge in project completions, benefiting the company’s fourth-quarter performance.
“Revenue totalled US$14,522 million, representing a 10 percent decrease from the prior year’s revenue of US$16,163 million, aligning with the drop in sales volumes,” he said.
Overall, Sebborn said the group experienced a decline in profitability levels for the period compared to the prior period.
For the period under review, production volumes declined by 5 percent compared to the previous period, enabling the fulfilment of backorders and replenishment of fast-moving inventory.
“The period saw stable raw material availability, supporting business continuity,” said Sebborn.
The company noted that 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.
Sebborn said electricity supply remains a concern for business operations; however, the solar project was successfully commissioned during this quarter and will help mitigate the power outages impact.
He said the factory remains capacitated to convert all orders in time.
Proplastics said the performance was significantly impacted by macro-economic factors, particularly the prolonged drought, which led to decreased consumer spending, while Government allocations prioritised drought relief.
Online Reporter