daniel chigunwe
Business Writer
Listed brick making firm, Willdale Limited, reported subdued performance for the first half of the year to March 31, 2024 with the firm heaping blame on economic uncertainty, inflation, and a depreciating currency.
According to the company, profitability was severely affected by an array of factors among them unrealised exchange losses emanating from the revaluation of foreign currency denominated liabilitites.
Despite the challenges, Willdale’s revenue grew 91 percent in inflation-adjusted terms compared to the same period last year.
In historical terms, revenue surged by 1,272 percent.
However, the company incurred an operating loss of $113 billion, compared to $19 billion a year ago.
Willdale said the introduction of a new currency, the ZiG, in April 2024, stabilised inflation but also led to a wait-and-see attitude from customers, impacting sales after the reporting period.
The company also pointed to the introduction of a 15 percent VAT on clay brick sales as a burden.
Willdale said customers resisted the price increase and opted for suppliers who may not be complying with VAT requirements.
On the positive side, Willdale said an early start to production due to the poor rainy season, led to a 145 percent increase in green brick production compared to the prior year.
The company is looking to ramp up production further if it can secure funding for a new all-weather plant.
Looking ahead, Willdale sees opportunities to increase sales in the remainder of the year, driven by ongoing construction projects. The company said it will focus on efficient and low-cost production to compete effectively.
Willdale did not declare a dividend for the first half of 2024, citing the need to preserve cash for working capital.
Online Reporter