adminEnacy Mapakame
Business Reporter
Turnall says the easing of lockdown restrictions has increased demand for its products with third quarter performance above same period last year.
In a trading update, Turnall indicated sales volumes for the quarter were 11 percent above comparable period and 81 percent above the previous quarter, thanks to the improved business conditions following easing of lockdown restrictions. The country implemented Covid-19 lockdown effective March 30, 2020 to limit the spread of the pandemic, a situation that resulted in lost businesses as trading hours were significantly reduced.
However, the Government relaxed some of the Covid-19 restrictions during the period, which helped to stimulate local demand for goods and services in the period.
“Following the easing of Covid-19 restrictions in the third quarter, the group experienced increased demand for its products,” said Turnall in a trading update.
“The operating environment for the third quarter improved due to the stability of the foreign exchange rate after the introduction of the foreign currency auction system by the Reserve Bank of Zimbabwe.
“The prices for goods and services have relatively remained stable and this has enabled the business sector to improve the planning process. Power supply was stable and fuel availability improved during the quarter, thereby assisting the business to improve capacity utilisation,” said Turnall.
According to the group, cumulative sales volumes for the nine months were 3 percent above the comparable period last year. Exports were 3 percent of sales volumes for the period and were negatively affected by the Covid-19 pandemic and resultant transit restrictions.
Production volumes for the period were 31 percent above the comparable period last year.
But cumulative production volumes were 3 percent below the volumes for the comparable period previous year. Despite the challenges still experienced in the business environment, management is upbeat of maintaining the growth trajectory going forward. The higher seasonal demand is expected to continue in the fourth quarter as customers roof their properties before the onset of the rains.
Other factors such as improved movements within the country and across borders should also work to the group’s advantage although the environment may remain uncertain due to impacts of Covid-19 on the economy.
Turnall said: “The relaxation of restrictions and opening of borders in December 2020 is expected to provide an improvement in the movement of both people and cargo.
“However, there is significant uncertainty on the duration and expected impact of the Covid-19 pandemic on the business and the economy.”
Online Reporter