Itai Ndongwe
HARARE – Proplastics Limited’s first-quarter report for 2025 indicated an initial period of promise that was subsequently impacted by significant headwinds stemming from the macroeconomic environment, monetary policy, and trade regulations.
Adding to these challenges, the company faced considerable obstacles due to the scarcity of local currency and increased export surrender requirements. Adding on , concerns raised by the formal market regarding unfair competition underscore the difficult operating landscape for Proplastics.
Despite the significant obstacles encountered in the first quarter, Proplastics demonstrated resilience and achieved profitability. This positive outcome was underpinned by an impressive 11% growth in quarterly sales volumes compared to the prior period. Correspondingly, production volumes also increased by 11%, enabling the business to effectively clear supply backlogs and replenish stocks for products experiencing high demand. Notably, the raw material supply remained consistent throughout the quarter, supporting the increased production levels.
The surge in sales volumes translated to a 3% increase in group revenue, reaching USD 4.263 million (ZWG 114.078 million), up from USD 4.123 million (ZWG 110.331 million) in the prior period. It’s important to highlight that this revenue growth was achieved without any contribution from exports in the current quarter, underscoring the strength of the domestic market performance.
This shows that Proplastics successfully navigated the challenging economic environment by focusing on domestic demand and operational efficiency. The significant growth in sales and production volumes indicates effective demand management and the ability to capitalize on available market opportunities despite the broader economic constraints.
Going forward, Proplastics anticipates a positive trajectory driven by several key factors. The conclusion of the rainy season is expected to trigger a robust surge in demand for piping products, fueled by the commencement of major projects across various sectors. Furthermore, the company projects a return to export revenue in the second quarter, supported by an encouraging increase in export inquiries.
The favourable rainfall and subsequent improvement in water levels at Kariba are also expected to enhance electricity generation, leading to improved operational efficiencies. With raw material prices projected to remain stable throughout the year and a well-equipped factory poised to promptly fulfill all orders, Proplastics appears well-positioned to capitalize on emerging opportunities and sustain growth in the coming period.
