National Tyre Services eyes growth amid road rehab initiatives

NATIONAL Tyre Services is aiming to capitalise on the extensive road rehabilitation programme, which is set to enhance infrastructure and road safety, potentially resulting in increased vehicle traffic and a higher demand for tyre services.

This comes as the Government has engaged five contractors to resume the rehabilitation of key roads across the country as part of efforts by the Second Republic to modernise the country’s road network and improve accessibility.

Major roads set for rehabilitation include the Beitbridge-Bulawayo-Victoria Falls Highway, Bulawayo-Nkayi Road, and the Kwekwe-Lupane-Nkayi Road.

Developing sound road infrastructure is one of the critical enablers towards achieving set targets under the National Development Strategy (NDS1), the Government’s economic blueprint spanning 2021 to 2025.

The firm says it realised strong demand for light truck and luxury motor vehicle tyres during the build up to Sadc summit in August.

In its abridged audited financial statements for the year ended 31 March 2024, the firm said it intends to boost profitability and market share through offering a balanced product portfolio of meticulously engineered tyre brands.

It expressed optimism of a return to normal peak season in the second half of the year, typically hot and rainy seasons drive demand for tyres and related services.

“As we look ahead, we envisage leveraging the rolling extensive road rehabilitation programme, which will improve infrastructure and enhance road safety, potentially leading to increased vehicle traffic and demand for our tyre services.

“Already, the company has realised strong demand for light truck and luxury motor vehicles tyres during the build up to Sadc summit,” it noted.

On operations review, it said procurement of market driven premium tyres resulted in a 24 percent increase in new tyre sales volumes when compared to the prior year.

Although the company closed four retail outlets at the beginning of the Financial Year, National Tyre Services managed to maintain a strong presence in affected areas through personal selling.

It retained a large retreading customer base through improved turnaround time and unmatched workmanship.

Retreading sales volumes rose by 10 percent from April 2023 to March 2024 when compared April 2022 to March 2023.

Sales grew by 95 percent (inflation adjusted) to ZWL259 669 billion (2023: ZWL133 291 billion) .

Gross profit increased by 39 percent to ZWL105,314 billion(2023 : ZWL75 752 billion).

In the period under review, total operating expenses increased significantly (inflation adjusted) to ZWL114 067 billion (2023: ZWL66 775 billion).

The company incurred a loss before tax of ZWL39 276 billion (inflation adjusted) from a loss of ZWL7 253 billion in the previous year.-chronciles