GB Holdings’ volumes up 22 percent
Diversified conveyor belts supplier, General Beltings Holdings Limited’s total volumes for the half year to June 30, 2022 jumped 22 percent to 500 tonnes compared to same period last year.
This was despite the liquidity constraints in the economy.
GB Holdings chairman Godfrey Nhemachena attributed the volumes growth to a solid performance at Cernol Chemicals whose volumes grew 42 percent compared to same period last year.
“Cernol Chemicals shored up the volumes as the economy opened up post-COVID-19 restrictive measures and benefited from its consolidation in the niche markets,” he said.
Overall total turnover rose 123 percent to $669 million from $597 million achieved in the prior year comparable period driven by volume growth at Cernol Chemicals.
General Beltings however consolidated its market positioning in the traditional markets as customers substituted imports with locally produced products.
Total gross profit at $278 million increased by 5 percent when compared with the same period prior year’s $265 million due to improved throughput and cost containment measures.
Due to the USD imported inflation in the rapidly dollarized environment, operating costs at $260 million increased by 58 percent when compared with the prior year period’s $164 million.
As a result, an operating profit of $24 million was recorded against $104 million in the prior year’s same period.
While the economy is expected to rebound on the back of improved agriculture performance, mining and the tourism sectors, challenges are still expected in the economy due to the war in Ukraine which will cause logistical supply chain problems.
However, GB Holdings is banking on its firm order book to maintain a positive trajectory.
“The company is poised to meet the increased demand in the fourth quarter driven by an improved order book as local firms continue to appreciate the company’s commensurate value proposition.
“In addition, activity in the tourism industry is expected to improve given the positive sentiment around containment of potential pandemics like COVID-19 and Monkeypox,” said Nhemachena.-ebusinessweekly
