Online Reporter
Nqobile Bhebhe, Business Hub
Turnall Holdings Limited (Turnall) has announced that it is actively resizing its operations in a strategic effort to reduce costs, enhance profitability, and boost cash generation.
The development comes as the company reported a total production output of 7,357 tonnes of fibre cement and concrete products for the first quarter of 2025, an 18 percent decline compared to the same period in 2024.
In its interim financial results for the period under review, Turnall said that its production volumes were closely aligned with prevailing market demand. The company also maintained adequate stock cover across all major product lines for most of the quarter.
Turnall’s sales revenue fell to US 2.3million, representing an 11 percent drop from US 2.3million, representing an 11 percent drop from US2.6 million recorded during the first quarter of 2024.
“The drop in sales was largely due to the low economic activity in the market and liquidity challenges which were prevailing in the economy,” the company said in a statement accompanying the results.
Correspondingly, sales volumes declined sharply by 31 percent to 5,464 tonnes, compared to 7,926 tonnes in the prior year. Turnall noted that this decline was compounded by a shift in the sales mix, with a higher proportion of low-tonnage fibre cement products being sold during the period.
Despite the downturn in volumes and revenue, the company improved its gross profit margin to 22 percent, up from 19 percent in the first quarter of 2024.
“The improved margins were mainly due to the change in the sales mix, as the group enjoys higher margins on fibre cement products,” said Turnall.
However, the company was unable to generate positive cash flows from operating activities during the quarter, largely due to the incurred loss.
“The business is in the process of resizing its operations to contain costs and thereby improve profitability and cash generation,” the company said.
Notably, Turnall invested US$2.2 million in capital expenditure during the quarter. The bulk of this investment was directed toward components and civil works for a new sheeting plant currently under development in Harare.
