Powerspeed Electrical revenue jumps 24pc
Powerspeed Electrical’s revenue increased by 24,35 percent to US$58,2 million in the half-year to March 31, 2024 largely driven by product availability and range.
Resultantly, the company’s gross profit increased from US$9,8 million to US$14,2 million.
Operating expenses increased by 28,5 percent to US$ 9,9 million, resulting in an operating profit of US$4,2 million compared to US$ 2 million in the same prior period.
According to the group’s financial statement for the period, profit after tax similarly witnessed remarkable growth, more than doubling from US$1,2 million in the 2023 interim to US$2,9 million.
The company’s shareholder equity grew from US$40 million to US$49,1 million during the half year.
“The period under review marked a notable increase in shareholder equity, climbing from US$40,6 million to US$49,1 million,” the group said.
Electrosales Hardware did not open new branches or relocate existing ones during the half-year period as it focused on enhancing the content and offerings at their current branch locations.
The group focused on significant improvements in merchandising, marketing efforts and product displays.
“Maintaining a reliable supply of products has proven to be extremely challenging. Suppliers from China have experienced erratic supply patterns for various reasons, while power cuts in South Africa have affected many local suppliers’ ability to meet market demand.
“Local suppliers have also encountered significant difficulties due to the challenging business environment in Zimbabwe.
“Despite these hurdles, we have continued to invest in stock and systems, improving product availability in all our stores. This enhanced product availability has undoubtedly contributed to the increase in throughput throughout the reporting period.”
Powerspeed Electrical’s commitment to maintaining maximum product availability and expanding its product range has resulted in an increase in sales compared to the previous year.
“Our commitment to ensuring maximum product availability and expanding our product range has led to an increase in sales volume compared to the previous year,” the financial statement said.
The strong remittances flow from the country’s diaspora has fuelled a surge in residential construction nationwide.
This increased demand for building materials, thereby boosting the overall demand in the domestic market.
The company as a whole has substantially improved its ability to cater for this customer group and expects further expansion driven by the clientele.
Electrosales Hardware in the previous financial year opened its 22nd branch in Zvishavane, providing large-format hardware supplies to an area that previously did not have access to such conveniences.
Although the initial throughput was slow, it has steadily increased since the branch’s opening.-herald
