Border Timbers forecasts positive trajectory
Border Timbers says it is forecasting a positive trajectory and growth following its exit from judicial management in March 2022, supported by improved timber prices and demand.
The company, the largest kiln dried lumber in Zimbabwe is an established Zimbabwean forest company with three operational divisions -forestry, saw-milling and manufacturing – with 20 002 ha under plantation across five estates in Zimbabwe’s Eastern Highlands.
It is a subsidiary of the Rift Valley Corporation. Formally established in 2012, Rift Valley Corporation is a leading agro-forestry business in Zimbabwe.
Lysius Karimanzira, the company’s finance director in a statement of financials for the 9 months to March 31, 2022 said revenue grew five percent to $1,8 billion compared to same period prior year driven by consistent quality of Kiln Dried Timber which resulted in better average selling prices and improved customer demand.
“With Imbeza Estate being FSC Certified, it is expected that new markets will be opened, and plans are underway to get the other Estates certified,” he said.
Karimanzira noted that despite the challenging market conditions during the nine-month period under review, the business continued to generate positive cash.
“The environment presented both challenges and opportunities for the Company. However, our business model continues to be resilient and the challenges faced were addressed and the prevailing opportunities were pursued,” he said.
During the period under review, Lumber sales volume was 7 percent down compared to the comparative period in the prior year with the reduction in sales volume mainly driven by low production volume as a result of power outages as well as the extended rainy season that affected harvesting operations.
“The demand for Lumber remains high both in the local and export market,” Karimanzira.
He added that treated poles sales volume was 17 percent higher than the same period in the previous year and this was as a result of marketing initiatives which has seen an increase in the market share within the region.
For the furtherance of its forestry sustainability goals, Karimanzira said the Company managed to secure the Forest Steward Council (FSC) Certification for Imbeza Estate.
He said that this initiative ensures best forestry management practices under FSC, which gives the company access to European markets that demand FSC certified products.
Meanwhile, he noted that the company’s major risk remains the loss of forestry to fire but the company is continuously reviewing and strengthening its fire patrol teams as well as upgrading the firefighting equipment.
Karimanzira indicated that the focus going forward is on intensifying replanting activities, capitalizing on the rains, and advancing the winter planting plan.
He noted that during FY2023, old sawmilling equipment will be replaced with latest technology in order to increase production efficiency.
Border Timbers exit from judicial management came after six years of uncertainty after it failed to service debts to several financial institutions worth $20 million.
In November 2018, the company voluntarily suspended trading on the Zimbabwe Stock Exchange.
Previously, the company’s exit from judicial management was delayed by the settlement and sharing of the $25 million that was awarded to the company by an International Court for Settlement of Investment Disputes (ICSID) tribunal.-ebusinessweely
