General Beltings holding sees decrease in volumes

General Beltings (GB) Holding Limited recorded total volumes of 921 metric tonnes for the year ending December 31, 2023, marking a 2.5 percent decrease from the previous year’s 944 due to weakened demand.

However, improved throughput at General Beltings Division, managed to offset further volumes declines for the group.

At Cernol Chemicals, market recovery efforts yielded a lower than expected outcome, with volumes marginally lower than the prior year.

Although price competition intensified in the year, total turnover at $29 billion increased by 99 percent when compared with prior year’s $15 billion due to sustained volumes from prior year at General Beltings and a favourable market mix at Cernol Chemicals.

Owing to the US dollar imported inflation and a deteriorating exchange rate in an increasingly dollarised environment, the gross profit at $11 billion was 38 percent higher than the prior year’s $8 billion.

The company benefited from improved internal process efficiencies which arose from scheduled plant maintenance and refurbishment. Operating costs at $15 billion were 150 percent up on prior year’s $5 billion due to the effects of inflation and dollarised quasi institution costs.

Inflation

A resultant operating profit of $2 billion was 150 percent low on prior year’s profit of $3 billion on the back of increased dollarisation and inflationary pressure.

Total volumes at General Beltings’ rubber division closed the period at 378 tonnes, which were in line with the prior year’s 379 tonnes as the division defended its market positioning through improved process efficiencies and timeous deliveries.

Although volumes were in line with prior year, turnover at $21 billion was 100 percent higher than the prior year’s due to the effects of inflation.

At Cernol Chemicals, volumes at 543 metric tonnes were 36 percent higher than the prior year’s 397 metric tonnes as its traditional markets were yet to recover from the Covid-19 effects which lingered on.

Turnover for the division doubled to $8 billion from the prior year’s $4 billion due to a shift in the marketing mix and inflation when compared with the prior year.

Despite the anticipated challenging environment due to the El Nino induced drought’s impact on agriculture and fluctuating mineral commodity prices, management is still hopeful of maintaining a good performance as the company expects to consolidate its market positioning in the energy and cement manufacturing sectors. -chronicle