Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
BRICK manufacturer Willdale Limited recorded mixed fortunes in the half-year to March 31, 2026, after sales plunged 50 percent, weighed down by production constraints.
Despite the volume decline, which also weighed on revenue, the company reported an improved operating loss as management intensified cost-containment measures.
The company says demand for bricks remains strong, supported by sustained investment in cluster housing developments, shopping malls and educational infrastructure projects, positioning the business for growth once production improves.
In a trading update accompanying the half-year financial results, Willdale chairman Mr Mataruka said revenue performance was affected by limited stock availability arising from subdued production during the period.
“Revenue performance was affected by limited stock availability resulting from subdued production levels. Sales volumes declined by 50 percent, while revenue decreased by 27 percent compared to the prior-year period,” said Mr Mataruka.
Despite a decline in sales and revenue, the company narrowed its operating loss through ongoing efficiency and cost-management initiatives.
“Encouragingly, despite the reduction in revenue, the operating loss improved from US$1,8 million in the prior year to US$1,6 million, reflecting the effectiveness of ongoing cost containment measures and operational efficiency initiatives implemented by management,” he said.
Willdale maintained that its position in the market remained strong despite heightened competition within the brick manufacturing sector.
“The company maintained its strong market position despite increased competition within the sector. Demand for bricks remains resilient, underpinned by continued investment in cluster housing developments, shopping malls and educational infrastructure projects,” said Mr Mataruka.
“The sustained level of activity across these segments provides a solid platform for growth as production volumes improve and stock availability increases.”
The construction industry remains one of the key drivers of demand for building materials in Zimbabwe, with residential housing projects, commercial developments and institutional infrastructure continuing to support activity across the sector.
However, production during the reporting period remained below optimal levels due to working capital challenges.
According to the company, extrusion output was 29 percent lower than in the corresponding period last year, as constrained funding limited production capacity utilisation.
“Production during the period remained constrained by working capital limitations, resulting in extrusion output being 29 percent below the prior year,” said Mr Mataruka.
To address these challenges, management is actively pursuing funding initiatives aimed at boosting production capacity and improving stock availability.
“Management is actively pursuing funding initiatives aimed at increasing plant capacity utilisation to at least 70 percent by the fourth quarter.
“This will position the company to fully leverage the peak dry season (May-November), when operating conditions are most favourable for increased production and improved efficiencies.”
Willdale also revealed that plans to acquire a new production plant are progressing, with funding options currently being evaluated.
“In parallel, efforts to acquire a new plant are at an advanced stage, with funding alternatives having been streamlined and are under evaluation by the company’s financial advisors.
“Together with continued development of the company’s commercial real estate, these initiatives are expected to enhance production capacity, strengthen market responsiveness and support long-term growth objectives,” said Mr Mataruka.
The company is also banking on its property development projects to improve liquidity and support future growth.
Management expects increased cash generation from land development projects as stand sales gain momentum, while additional saleable land is expected to become available from the fourth quarter, subject to regulatory approvals.
Looking ahead, the board expressed optimism about the remainder of the financial year, citing stronger production prospects during the dry season and sustained demand from the construction sector.
“The outlook for the remainder of the financial year is positive.
“The company’s primary focus remains the mobilisation of working capital resources to support increased production and improved stock availability. Management expects higher production volumes during the dry season to translate into stronger sales performance and improved operating results,” said Mr Mataruka.
“The company also expects continued cash generation from its land development projects to strengthen as stand sales gain momentum.
“Subject to the granting of the necessary approvals, saleable space within the company’s land banks is anticipated to increase from the fourth quarter, creating additional opportunities to generate cash flows and support business operations.”
Mr Mataruka said the board remained confident that a combination of commercial real estate development, enhanced production levels and robust market demand would drive improved financial performance going forward.
“The board believes that the combination of the development of the commercial real estate portfolio, enhanced production levels and sustained market demand provides a clear pathway towards improved financial performance.”
