General Beltings volumes rise

Zimbabwe Stock Exchange-listed and mining consumables manufacturer, General Beltings Limited (GB), rode its essential services status to see volumes across all divisions improve during the first quarter despite the hard Covid-19 induced lockdown at the beginning of the year.

Overall volumes rose 37 percent, which management attributed to improved demand.

“Despite the negative impact of Covid-19 on the company’s key markets, overall volumes for the quarter at 221 metric tonnes were 37 percent above the 162 metric tonnes recorded in the same period prior year due to an improved order book,” said GB in its first quarter trading update.

The rubber division was the peak performer, as its volumes spiked by 57 percent in the quarter when compared with prior year same period “due to improved factory efficiencies and adequate stocking levels at December 31, 2020 year end.”

And although the company’s Chemicals division’s hospitality sector was negatively affected by the lock down period, it recorded a volumes growth of 21 percent despite intensified price competition in the hygienic sector.

The company manufactures and distributes general-purpose and specialised textile reinforced conveyor beltings with its products ranging from rubber-covered belting, polyvinyl chloride (PVC) belting and light-duty PVC belting.

As a result of the positive volumes performance, GB’s revenue — in inflation adjusted terms — went up by 46 percent from the prior comparable period.

Management said the company operated profitably despite inflationary pressures during the quarter under review.

The company maintains a positive outlook for the balance of the year.

“An anticipated bumper harvest and the rebound of mineral commodity prices in the global markets is expected to spur growth in the agricultural and mining sectors respectively.

“The company will continue to consolidate its market position in the mining sector and pursue niche market for the chemicals division.

“The company has adequate resources to sustain the business as a going concern in the foreseeable future,” said GB.

At the close of last year, then majority shareholder Shabanie Mashaba Mines (SMM) disposed its entire 43,22 percent shareholding in the company to Jemaimah Investments, a consortium of local businesspeople.-herald.cl.zw