HARARE – Turnall Holdings Limited’s Fibre Cement building products have boosted volume growth, contributing 79% of the sales volume for 2021, a 7% increase compared to the same period last year.
In the company’s trading update for the cumulative nine-month aggregate, acting company secretary, Zvidzayi Bikwa said sales volumes remained steady in the period under review at 13% with Fibre Cement pipes contributing 2% of the year-to-date sales volume for the same period.
“The company delivered pleasing volume growth over the comparative period, supported by on-going projects participation and enhancement initiatives”.
Concrete roofing tiles contributed 19% of total sales volumes which was a 6% increase compared to last year.
Bikwa said the company registered an increase in revenue by 188% in historical terms while exports sales increased by 3% compared to the same period last year.
Furthermore, the company’s production tonnage had a 12% growth over similar period last year. Profit before taxation improved by 147% compared to the same period last year.
However, the company’s exports decelerated following regional lockdowns, consequent logistics disruptions as well as higher local market demand which outweighed production capacities.
There are good prospects for growth in the construction industry particularly at local authorities’ level and national Government projects.
Despite challenges prevailing in the economic environment, Bikwa said the company is optimistic that they will post better results in 2021. This will be achieved through volume growth, cost containment and further realignment of business processes.
“Innovation in products and services with an objective to offer continuous improvement in convenience and customer satisfaction through a rich product mix in roofing such as Slates, Ecotiles and Pantiles is a priority”.
Additionally, the company is investing in a new model plant that is set to improve the product variation and automate production processes. Subsequently, the migration from Fibre cement pipes to Glass Reinforced Pipe (GRP) manufacturing is at an advanced stage.
The company has put in place necessary procurement structures to ensure a continuous supply of critical raw materials that will translate to uninterrupted production for the final quarter of the year.
In September 2021, Turnall said it was working on expanding and reinvesting their products to new technologically advanced products such as glass reinforced piping and solar systems roofing.
The company which is currently operating at 100% capacity utilisation controls more than 95% of the market in the asbestos sector in the country.
On the ZSE, Turnall is currently trading at 541.00c with a market cap of $2.4 million.