Chronicle Editor
Judith Phiri, Business Reporter
TURNALL Holdings Limited, a leading manufacturer of roofing and building products, is set to install a new sheeting plant in Harare, a move expected to boost its production capacity, reduce manufacturing costs, and generate significant savings on transportation.
The new facility will enhance the output of roofing tiles by introducing additional tile templates, with operations expected to ramp up in the fourth quarter of 2024.
This development follows the company’s recent capital expenditure of US$2 million for the period ending 30 June, 2024, a substantial increase from the previous year’s expenditure of just US$72 971, primarily aimed at upgrading the Bulawayo sheeting plant and acquiring the new Harare facility.
In a trading update for the third quarter ended 30 September 2024, the board chairman, Mr Grenville Hampshire said progress has been made in improving the operational efficiency of the tile plant and further gains will follow when the new templates arrive.
“There are deliberate strategies being implemented to improve the product offering in an effort to grow revenues. Enhancement of production efficiencies and cost containment remain key focus areas as well for management and these efforts are starting to bear fruit. We remain committed to turning the Group’s fortunes around and restoring it profitability,” he said.
In terms of production, he said the company produced 9 728 tonnes of fibre-cement and concrete products in the third quarter of 2024 representing a 14 percent growth compared to the same period last year.
Mr Hampshire said this was driven by improved production efficiencies and critical raw materials availability.
In profitability, he added: “The sales revenue for the quarter was US$3,3 million which was a 6 percent growth compared to the same period last year (USD 3,1 million). The revenue growth is attributed to a change in the sales mix which was skewed towards the high value and low tonnage products.”
He said consequently, the sales volumes for the quarter were 8 537 tonnes, which was seven percent lower than the same period last year (9 132 tonnes) due to the change in the sales mix.
Mr Hampshire said cumulative sales volumes for the nine months ending 30 September were five percent above the same period last year.
“Similarly, the cumulative sales revenue was US$8,8 million which was a 5 percent growth from the same period last year and this was driven mainly by fibre cement products availability.”
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