Brick manufacturer pins hope on resurgent construction sector

ZIMBABWE Stock Exchange (ZSE) -listed brick manufacturing company, Willdale Private Limited, is optimistic about improved sales volumes in the second half of the year spurred by the resurgent construction sector growth mainly in housing development and key public infrastructure projects.

The growth of the construction sectors has increased demand for building materials such as bricks, cement and other critical construction inputs along the value chain.

In a statement accompanying the company’s financial results for the half-year ended 31 March 2024, Willdale chairman, Mr Cleophas Makoni, said given a strong supply chain and production capacity in place, the company is well-positioned to capitalise on this growth opportunity.

The company’s expectations are also buoyed by the Government’s commitment to infrastructure development, which includes plans to build new roads, bridges and housing units. Willdale is one of the leading players in the brick manufacturing industry.

“Opportunities to increase sales in the remainder of the year exist as stakeholders in the construction sector continue to promote various projects in housing development and other infrastructure,” said Mr Makoni.

“Efficient and low-cost production will be critical going forward to compete effectively.”

He said the company will continue reviewing its operating strategy to ensure growth in both revenue and profitability, riding on strong brands and systems that deliver quality bricks.

“Our partners in the land development transactions have commenced making applications for relevant permits to start the projects. The projects are expected to contribute to financial results in the next financial year,” said Mr Makoni.

He, however, noted that the introduction of 15 percent value added tax (VAT) on clay brick sales from January brought with it some shocks into the market as customers resisted the increased prices. Mr Makoni, however, hoped that mechanisms will be put in place to ensure that all manufacturers comply with the VAT requirements going forward.

“The poor rainy season presented an opportunity to restart extrusion earlier than usual resulting in a 145 percent increase in green production compared to the prior year,” he said.

“Production will continue to be ramped up subject to the availability of electricity and working capital to meet growing demand. Efforts are underway to secure funding to acquire the planned all-weather plant.” — -chroncile