General Beltings withstands challenges

Listed rubber and chemicals manufacturer, General Beltings says despite stiff competition from imports it withstood the challenges by implementing a sound price system, product quality and turnaround times.

The firm said despite global operational challenges occasioned by ongoing Russia-Ukraine conflict it pursued a strategy of continuously delivering a commensurate value proposition to its customers through a product offering that competes with world players.

In a statement accompanying financial results for the period ended June 31 December, 2022, the company said despite global operational challenges which affected local operations, the company continued on its growth path in pursuit of its strategy of delivering a commensurate value proposition to its customers through consistent product quality, competitive pricing and timeous delivery of products

“The rubber division consolidated its market positioning while the chemicals division focused on market recovery post the Covid-19 pandemic while at the same time established new market niches.

“The order book firmed up as consumers of the company’s products opted for a local producer as a mitigant against their own supply risk. Despite stiff competition from imports, the company held its own in terms of price, product quality and turnaround times,” said the firm.

Gross profit increased by 96 percent to $1,6 billion when compared with the prior period of $846 million due to improved overhead recoveries.

It added that despite the unrelenting inflation and increased dollarisation, operating expenses at $1,183 billion were 69 percent above the prior year’s $698 million due to cost containment measures in the year.

“The company posted an operating profit increase of 274 percent to $564 million from the $151 million recorded in the prior year.”

General Belting’s rubber division registered increased volumes by 22 percent to 379 metric tons when compared with the prior year’s same period of 301 metric tonnes driven by the growth recorded in the mining sector.

The division’s growth was buoyed by a consistent order book and improved throughput despite intermittent shortages of raw material in two months of the year under review.

However, its Cernol Chemicals total volumes which ended the period under review at 564 metric tonnes was a decrease of 52 percent when compared with the prior year’s 1178 metric tonnes.

It attributed the decline to depressed aggregate demand and the absence of exceptional Covid-19 business recorded in the prior year.chronicle