Online Reporter
Nelson Gahadza, Zimpapers Business Hub
Turnall Holdings says it is optimistic of a break-even at the operating profit level in 2025, following a massive loss from operating activities amounting to US$3,2 million reported in 2024.
Group chairman Mr Grenville Hampshire, in a trading update for the quarter ended September 30, 2025, said the turnaround will be achieved through revenue growth, increased production efficiencies, and continued cost containment initiatives.
He added that performance will also be driven by the installation of the state-of-the-art fibre-cement sheeting plant in Harare, which is now almost complete and expected to be commissioned in the fourth quarter of 2025.
“This will result in an improved product offering for our valued customers, amongst other benefits.
“In addition, the feasibility study for the conversion of the Bulawayo plant to produce non-asbestos sheeting has been completed, and the business is in the process of considering producing some trial products for testing in the regional market,” he said.
Turnall manufactures a variety of building and construction materials, including fibre-cement roofing sheets, concrete roofing tiles, and other concrete products like pavers and partition boards.
According to the trading update, the company’s turnover for the period under review was one percent below last year’s quarter at US$3,3 million.
“However, sales volumes for the quarter went up by seven percent to close at 9,150 tonnes. The discrepancy between revenue and volumes is attributed to the sales mix, which had a higher proportion of low-value, high-tonnage products compared to the same period last year,” said Mr Hampshire.
He added that year-to-date sales were US$8,3 million, representing a six percent drop compared to the same period last year, whilst sales volumes, at 27,348 tonnes, were 11 percent below the prior year.
During the period under review, the group produced 10,782 tonnes of product, an 11 percent growth compared to the same period last year, in spite of the power outages experienced during the period.
Mr Hampshire said production levels for the quarter under review were adequate to meet sales requirements.
He noted that the tile plant was put on a planned shutdown for 12 days in August 2025 to allow for electrical installations in respect of the new fibre-cement sheeting plant being set up in Harare.
According to the trading update, the company’s gross profit for the quarter was 28 percent compared to 20 percent reported last year, attributed to improved production efficiencies and ongoing cost containment initiatives being implemented by management.
The overall gross margin for the nine months was 26 percent, up from 19 percent achieved last year.
“As a result, the business recorded a profit after taxation of US$92,091 as the turnaround strategies are starting to bear fruit. On a year-to-date basis, the group has seen a 91 percent reduction in the loss after taxation, which is a positive development,” said Mr Hampshire.
During the quarter under review, the business generated US$809 101.00 from operating activities before working capital changes for the nine months ended September 30, 2025, compared to a net cash outflow amounting to US$882 423.00 recorded last year.
derick.khumalo