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Enacy Mapakame Business Reporter
Zimbabwe Stock Exchange (ZSE)-listed brick-making firm Willdale Limited’s production for the full year to September 30, 2022 declined by 9 percent against the same period last year due to disruptions caused by rains and power outages.
Late rains experienced in April this year, the firm said, had a knock-on effect on production, although a favourable product mix allowed the company to enjoy better average prices and good margins. Individual house building and the development of public educational infrastructure were the main drivers of volumes during the year.
The group expects this trend to continue into the near future.
“The late rains that were received in April and regular power outages during the year affected production resulting in a 3 percent drop in green output compared to the prior year,” said chairman Cleopas Makoni in an update for the year under review.
However, Mr Makoni highlighted that fired production rose 4 percent above prior year.
The group is looking at enhancing production capacity and efficiency.
“A new crushing plant, which will improve product quality, will be installed in the new year.
”Further investments in capital expenditure are planned for the coming year to improve productivity and efficiency of both fixed and mobile plants,” said Mr Makoni.
In terms of financial performance, total revenue was 9 percent above prior year to close the period under review at $5,1 billion.
According to the group, revenue performance was also affected by exchange rate distortions.
Other income of $66 million was realised in the period to September, from $121 million last year, weighed down largely by exchange losses.
A profit before tax of $5,3 billion was recorded compared to the $1 billion recorded in the prior year. Total comprehensive income for the year more than trebled to $6,7 billion from $1,4 billion recorded in the prior year.
Basic earnings per share closed the year at 242,37 cents from 38 cents.
Net cash flows generated from operations amounted to $230 million compared to $80 million recorded last year. Total capex for the year amounted to $100 million from $131 million last year and was financed from internal resources.
Total assets nearly doubled to $20 billion from $11 billion in the prior year.
Willdale is working on increasing its brand visibility through improved quality and diversity of product mix which will also consolidate market share.
While the environment remains uncertain due to various reasons, Willdale pins hope on a sustainable financing model for housing to increase activity in the sector and increase profitability. Currently, demand for bricks for housing and other infrastructure projects remains high, according to Mr Makoni.
The group is also upbeat that the stability in the exchange rate following policy measures introduced during the year will give business confidence if sustained throughout the coming year.
Mr Makoni said: “The stability in the exchange rate and inflation brought about by the monetary measures introduced towards the end of the financial year, if sustained, gives us the confidence of a better operating environment for the ensuing year.
“Provision of stable electricity supply will be critical to efficient production.”
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