Border Timbers revenue falls 13pc
Border Timbers’ revenue for the full year to June 30, 2021 declined 13 percent to $1,4 billion from $1,6 billion in the same period last year as production remained depressed. In historical terms, revenue was 329 percent above prior year.
The firm widened its net loss to $3,2 billion compared to a net loss of $487 million in the comparable prior year.
During the year under review, total production fell 37 percent to 39,236 cubic metres from 62,317 cubic metres.
Transmission poles output went down by 45 percent to 6,195 cubic metres while lumber production fell 35 percent to 33,041 cubic metres.
On a year to date basis, lumber production is lower compared to prior year due to disruptions in production and logistical bottlenecks that were caused by Covid-19 pandemic. However, demand for lumber remains very high both in the local market and the export market.
Treated poles also reflect a decline in production and sales volume compared to prior year on the back of lower demand since the advent of Covid-19.
During the review year, total sales volumes decreased 29 percent to 43 320 cubic metres from 61,408 cubic metres.
Sales volumes for transmission poles eased 36 percent to 7,165 cubic metres while lumber sales volumes went down 27 percent to 36,155 cubic metres.
During the period under review, economic activity was adversely affected by various levels of lockdowns implemented to limit the spread of the Covid-19 pandemic.
However, the gradual easing of restrictions boosted Border Timbers’ export business.
“The economic conditions during the financial year under review were slowed down by partially relaxed Covid-19 induced restrictions to gatherings, travel, and business trading hours.
“The regional countries relaxed the lockdowns in response to the subsiding second wave Covid-19 infections rates, which had a positive impact on the export business.
The reassuring recovery in the Zimbabwe economy, mainly attributable to rescinding inflation and a relatively stable exchange rate, created a better trading environment which is expected to continue as the government continues to implement economic reforms,” judicial manager Mr Peter Lewis Bailey.
While the pandemic continues to create uncertainties, management is however upbeat that Government efforts to vaccinate the population will go a long way in ensuring that the economy rebounds and economic activity normalises.
“The company’s financial position continues to grow stronger and pacifying measures are in place to ensure continuity and viability of operations,” said Mr Bailey.-The Herald
