Chronicle Editor
Oliver Kazunga, Senior Business Reporter
ZIMBABWE Stock Exchange (ZSE)-listed bricks manufacturer, Willdale Bricks, has set its focus on penetrating the Sadc market in the post-Covid-19 era driven by the region’s potential for housing projects.
The firm produces a range of bricks and related construction products for the local market but has the potential to penetrate the region.
In its 2020 annual report, Willdale said future economic prospects for Southern Africa provides potential opportunities for the housing market.
“The group has been considering penetrating markets in the Southern African Development Community countries. We believe the economic recovery in the region post-Covid-19 will stimulate the construction industry and provide business opportunities for the company,” it said.
During the period under review, the manufacturing concern’s revenues grew by 19 percent to ZWL$596 million compared to the prior year figure of ZWL$499 million, driven by a 12 percent increase in sales volumes. The period saw total comprehensive income for the year amounting to $358 million.
“Our financial position remained strong with zero gearing and favourable liquidity ratios. The business continued to generate positive cash flows with a net increase in cash and cash equivalents of $72 million,” said the company.
However, production for the year declined by 20 percent compared to the prior year with the Covid-19 pandemic and associated lockdown measures also impacting negatively on the bottom line.
Operating profit decreased by 48 percent to ZWL$166 million compared to the prior year’s amount of ZWL$331 million after charging ZWL$8,7 million to depreciation of property, plant, and equipment (2019: ZWL$22 million).
The company said exchange gains amounting to ZWL$26 million (2019: ZWL$34 million) were earned from transactions of foreign currency denomination balances.
“Net cash flows generated from operations amounted to ZWL$125 million (2019: ZWL$72 million). Capital expenditure for the year, which was all financed from internal resources, totalled ZWL$35 million (2019: ZWL$30 million).
“Land and buildings were revalued to reflect fair values in line with our policy,” said Willdale.
Despite the encountered setbacks, the company said its financial position remains strong with zero gearing and favourable liquidity ratios.
“The business continued to generate positive cash flows with a net increase in cash and cash equivalents of $72 million,” it said. — @okazunga
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