Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
TURNALL Holdings Limited is resizing its operations, board chairman Mr Grenville Hampshire has said, in a strategic move to contain costs, boost profitability and enhance cash generation.
The Zimbabwe Stock Exchange-listed manufacturer reported a production of 7 357 tonnes of fibre cement and concrete products in the first quarter of 2025, an 18 percent decline compared to the same period last year.
“The business is in the process of resizing its operations to contain costs and thereby improve profitability and cash generation,” said Mr Hampshire in a statement accompanying the company’s interim financial results.
Turnall’s restructuring initiative follows a successful rights offer in 2023, which raised US$8 million for capital investment.
The proceeds were earmarked for retooling and renovating the fibre cement sheeting lines and establishing the Glass Reinforced Pipes (GRP) business, after years of delayed plant upgrades due to operational challenges.
The company, which has manufacturing facilities in Bulawayo and Harare, said production volumes during the quarter were closely aligned to market demand, with adequate stock cover maintained across all major product lines.
Sales revenue for the review period stood at US$2,3 million, representing an 11 percent drop from the US$2,6 million recorded in the same period in 2024.
“The drop in sales was largely due to the low economic activity in the market and liquidity challenges that were prevailing in the economy,” the company said.
As a result, sales volumes fell 31 percent to 5 464 tonnes, down from 7 926 tonnes in the prior year.
The company noted that the decline was further impacted by a change in the sales mix, with a higher proportion of low-tonnage fibre cement products being sold.
Despite lower volumes, gross profit margins improved to 22 percent, compared to 19 percent last year, driven by product mix changes.
“The improved margins were mainly due to the change in the sales mix, as the group enjoys higher margins on fibre cement products,” Turnall said.
However, the company was unable to generate positive cash flows from operating activities during the period, citing losses incurred during the quarter.
Turnall invested US$2,2 million in capital expenditure, with a significant portion of the funds directed towards components and civil works for a new sheeting plant under construction in Harare.
The company is a key player in the production of building and construction materials, including corrugated sheeting, flat sheets, pan tiles, pressure and sewer pipes, concrete roofing tiles, and related accessories. Its operations are segmented into building products, piping products and concrete tiles.
Turnall’s diverse product range also includes garden décor, partition boards, barges, fascia, pantiles, slate, endurites and innovative offerings such as the Ravenna concrete tile, NuTech non-asbestos sheets and Turnall Spanish pavers.
