Turnall Holdings revenue surges
THE Zimbabwe Stock Exchange (ZSE) listed roofing and construction products manufacturer Turnall Holdings posted 40 percent revenue growth for the third quarter to 30 September 2021 spurred by constant projects participation and enhancement initiatives.
Turnall Holdings said sales volume surged by 13 percent compared to the same period last year.
Acting company secretary, Zvidzayi Bikwa said in a trading update that “Fibre cement building products contributed 79 percent of the sales volume for 2021, a 7 percent increase compared to the same period last year while fibre cement pipes contributed 2percent of the year-to-date sales volume for the same period.”
He also said the concrete roofing tiles contributed 19 percent of total sales volumes, representing a 6 percent increase compared to the same period the prior year.
Turnall’s exports grew by 3 percent as a result of regional lockdowns, consequent logistics disruptions as well as higher local market demand which outweighed production capacities.
The company’s production tonnage in inflation-adjusted terms stood at 12 percent while profit before tax closed the period under review at 72 percent above the comparative period last year.
Mr Bikwa also noted that the company continued to expand its footprint into the SADC region.
The company indicated that this would be achieved through volume growth, cost containment, and further realignment processes.
“Volume growth, balanced with competitive pricing, operating cost control, and working capital management remain key focus areas for our management teams.
“The company has put in place necessary procurement structures to ensure a continuous supply of critical raw materials, which should translate to uninterrupted production for the final quarter of the year,” said Mr Bikwa.
“Innovation in products and services with an objective to offer continuous business improvement in convenience and customer satisfaction through a rich product mix in roofing such as Slates, eco tiles, and pantiles is a priority.
“The company is investing in a new model plant that will improve the product variation and automate production processes,” Bikwa said.
Turnall said migration from fibre cement pipes to glass reinforced pipe (GRP) manufacturing was at an advanced stage.
However, the group also noted that profit margins and cash flows would be impacted as the inflationary environment is expected to continue throughout the final quarter of the year 2022 Turnall Holdings is engaged in the production of building and construction materials comprising corrugated sheeting, flat sheets, pantiles, pressure pipes, sewer
pipes, concrete roofing tiles, and related accessories.
The company operates through the segments, which include building products, piping products, and concrete tile, and has its market presence in South Africa, Mozambique, Zambia, and Malawi.-The Herald
