Online Reporter
Nelson Gahadza
ONE of Zimbabwe’s largest brick makers, Willdale Limited says demand for bricks has remained strong, reflecting continued investor confidence in the property and construction sectors.
Group chairman Mr Brian Mataruka, in a statement of financials for the half year ended March 31, 2025, said housing and commercial development continued to show robust growth, supported by strategic partnerships with real estate developers.
“The outlook for the remainder of the financial year remains positive, underpinned by strong fundamentals in the construction and property sectors,” he said.
However, despite the strong demand, the company’s revenue for the period declined by 48 percent compared to the same period in the previous year.
“This decline was driven by a 30 percent reduction in volumes, resulting from working capital constraints that limited production, and a 26 percent drop in average prices due to intensified market competition, particularly in the common plaster brick segment,” said Mr Mataruka.
He noted that these challenges, coupled with ongoing cost pressures, led to an operating loss of US$1,8 million compared to a loss of US$3,8 million in 2024.
“Management anticipates a turnaround in the second half of the year, traditionally the peak production season, which should boost volumes and support a return to profitability driven by improved weather conditions and enhanced operational efficiency.
“Several cost rationalisation initiatives were undertaken in the period under review and the company has begun to reap the benefits of these initiatives,” said Mr Mataruka.
He highlighted that the 30 percent decline in sales volumes was not demand-driven but rather a result of stock shortages, as all available inventory was sold during the period.
Mr Mataruka said the business will continue advocating for improved industry compliance, particularly regarding the industry-wide application of value-added tax (VAT) on brick sales.
“Some industry players are neither charging nor collecting VAT, thereby offering lower prices and gaining an unfair trading advantage, which has a material bearing on the competition dynamics, particularly in the common brick market, which is highly price sensitive,” he said.
During the period under review, Mr Mataruka said production volumes fell by 43 percent compared to the same period last year, largely due to limited working capital and the impact of seasonal rainfall.
“To address these constraints, several strategic initiatives are underway to secure adequate funding and ensure operational readiness for the peak production period from June to December 2025,” he said.
He noted that fundraising through land disposals is expected to accelerate in the third quarter, following the issuance of a permit for the first phase of the commercial land development.
“The imminent development and disposal of the land bank will provide working capital, fund the acquisition of an all-weather plant, inject fresh capital for mobile equipment procurement and improvements in operational efficiencies whilst also increasing the production capacity of fired bricks,” said Mr Mataruka.
Looking ahead, he said management was focused on raising adequate working capital to support increased production of high-margin brick products.
“These efforts, which are expected to yield results from the third quarter of 2025, are critical to achieving scale, improving profitability and ensuring the long-term sustainability of the business,” he said.
Additionally, Mr Mataruka said the company is actively exploring new project opportunities and is particularly encouraged by the Government’s recent commitment to resume educational and infrastructure development projects, which are expected to stimulate additional demand in the sector.
“The company is focused on maximising new revenue streams within the property development sector, while also increasing the production of high-margin bricks and enhancing consumer awareness of the long-term sustainability benefits associated with these premium hard-burn bricks,” he said.
