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LISTED brick-making firm, Willdale Limited says sales volumes for the quarter ended 30 June increased by 26 percent over the comparative period last year and has built a significant order book to drive sales for the remainder of the year.
The company is engaged in making and selling clay bricks and their products include common bricks, face bricks, semi-faced bricks and paving bricks.
According to the company’s trading update, the continued growth in demand for higher-margin brick types helped to improve the product mix and margins.
The focus remains on efficient production and cost containment given the prevailing economic environment
“Year-to-date volumes for the 9 months were however four percent below the prior year and still reeling from the effects of low production experienced earlier in the year due to electricity shortages.
“A significant order book has been built to drive sales for the remainder of the year. The company continues to pursue various opportunities requiring bricks in various sectors,” it said.
Year-to-date revenue grew by 83 percent to $20 billion in hyperinflation terms and by 704 percent to $10 billion in historical terms compared to the prior year.
It said revenue continued to be impacted by exchange rate distortions.
It noted that short-term business plans will continue to be reviewed to remain viable adding that appropriate strategies will be deployed to generate sufficient business given low aggregate demand.
The brick manufacturer indicated that the prevailing tight liquidity conditions will heighten competitiveness in the market.
However, it expects the liquidity situation will improve post-general elections.
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