The Sunday News
Judith Phiri, Business Reporter
ZIMBABWE Stock Exchange (ZSE)-listed, Turnall Holdings Limited says it is going to resume the production of Inverted Box Rib (IBR) roofing sheets as they improve their product offering and take advantage of an additional segment of the market.
In a trading update for the third quarter ended 30 September 2022, the Group said the development will improve their product offering.
“The Group is also going to resume the production of Inverted Box Rib (IBR) roofing sheets which will commence in the fourth quarter of 2022. This will improve the Group’s product offering and see the company taking advantage of an additional segment of the market. The Group is also supplying some Government projects which are of national importance,” said Turnall Holdings.
The company said the refurbishment of the Harare fibre cement plant was currently underway, and production is expected to commence in the second quarter of 2023.
This will result in significant cost savings and improved product availability in the Northern region where there is higher demand for Turnall products.
In terms of turnover, Turnall Holdings said: “Turnover in historical terms increased by 282 percent in historical terms and by 13 percent in inflation-adjusted terms in spite of a volume reduction of 34 percent.”
The company said the decline in volumes was mainly due to a change in the sales mix which was skewed towards the high value and low tonnage building products, coupled with a decline in the aggregate demand due to liquidity challenges in the market.
Turnall Holdings said profit margins remained under pressure due to the increased cost of doing business and in addition, there were official and parallel market exchange rate distortions whose adverse impacts could not be fully absorbed through selling price adjustments.
“A business decision was made to build adequate stocks in preparation for the peak period. The Group continued to engage suppliers for better terms and prices, pursued its cost containment initiatives and restructured the business in line with its strategy.”
Despite the challenges experienced during the third quarter of 2022, the company said it remains focused on its strategies of innovation, profit optimisation, production of quality products and superior customer services.