Chronicle EditorOliver Kazunga, Senior Business Reporter
LISTED building materials supplier, Turnall Holdings recorded a 45 percent jump in sales volumes during the quarter ended March 31, 2020 as construction activity grew amid rising demand for decent accommodation.
Last year, the manufacturing company announced plans to enhance its production range by including supply of non-asbestos roofing materials as a deliberate move to boost exports.
In a trading update for the period under review, the building material producer said demand for its products remains positive.
“The group’s sales volumes for the quarter were 45 percent above the prior year comparative period. The group’s export sales volumes were four percent of total turnover up from nil in the previous year.
“The exports were mainly made up of non-asbestos roofing products, which were reintroduced in the second quarter of the previous year,” said Turnall.
As at March 31, 2020, production volumes were 17 percent above the prior year.
“The group benefited from the availability of stocks during the period and a strong appetite for shelter, which allowed construction projects to continue in a period when construction activity is normally subdued.”
In 2019, the group which was exporting to Zambia, increased its market share to include South Africa and Mozambique.
The manufacturing concern, however, has not been spared the adverse effects of Covid-19 global pandemic. “While the company is allowed to trade under the partial lockdown regulations, the selling and distribution of our products have been curtailed by the restriction of movement and restrictions on purchasing non-essential products,” it said.
The company resumed sales on the 26th of April 2020 and its production plants resumed production two weeks later.
“Management expects production to be at normal levels by the end of May 2020.
“The group imports most of its raw materials and spares from Europe, which was severely affected by the pandemic.
“The impact on the group’s supply chain is minimal as the group had significant stocks that had been shipped when the lockdowns started.”
It said if the lockdowns in Europe are eased soon, the impact on the supply chain would not be significant.
Meanwhile, Zimbabwe and some other countries like Russia and India have countered the call for an asbestos ban, citing the lack of conclusive scientific evidence in the toxicity of asbestos as to roofing material. — @okazunga.
Online Reporter