Online Reporter
Nelson Gahadza
Zimpapers Business Hub
Willdale says the acquisition of a more efficient common-brick plant remains a top priority to boost production and restore profitability, with output expected to improve in the second half of the year once working capital has been secured.
Chairman, Mr Brian Mataruka, in a statement accompanying the group’s financial results for the year ended September 30, 2025, said production performance during the period was constrained by limited working capital.
“Plant utilisation averaged 40 percent compared to 62 percent in the prior year, largely due to working-capital constraints that disrupted the supply of raw materials and critical maintenance spares.
“However, production volumes are expected to improve from the second quarter of 2026 once funding from stand sales is secured and acquiring a more efficient common-brick plant remains a key priority, with several funding options under consideration, including the disposal of stands,” he said.
Mr Mataruka said development work has already commenced on phase 1 of the Dale land, with site preparation underway to convert the area into an industrial park.
“Proceeds from the sale of serviced stands are expected to generate additional revenue in the coming year, while also providing critical funding for both working capital and capital expenditure requirements,” he said.
Despite production challenges, he said demand for bricks remained strong during the year, supported by ongoing construction of residential clusters, industrial warehouses, shopping malls and educational facilities.
Mr Mataruka said sales volumes were expected to rise significantly once production stabilised with adequate working – capital support.
“Willdale bricks continue to be preferred in the market due to their durability and the company’s consistent focus on product quality,” he said, adding that the planned acquisition of a new common-brick plant is expected to enhance competitiveness and improve margins.
For the period under review, the group reported a 45 percent decline in revenue to US$6,044 million from US$11,079 million, driven mainly by a 41 percent reduction in sales volumes.
The company’s operating loss widened to US$3,8 million from US$1,8 million in the prior year, reflecting lower production throughput, insufficient working capital and higher operating costs.
Looking ahead, the company said the removal of illegal settlers from the Dale land and the commencement of site-servicing works were expected to improve cash-flow generation.
Mr Mataruka said demand for clay bricks is anticipated to remain strong in the short to medium term, as Willdale focuses on efficient, cost-effective, high-volume production to return the business to profitability in the coming financial year.
