HARARE – General Beltings is forecasting improved performance in both its divisions for year end, after third quarter performance came in below budget due to the unintended lockdown effects globally and locally.
In its trading update for the third quarter, the company said the notable increase in local utility costs had impacted negatively on margins. This is in spite of improved performance of of the traditional markets for the chemicals division.
The rubber division performance is ahead of prior year and plan due to improved factory efficiencies and order book.
The improved performance at the rubber division is expected to continue on the back of a
strong order book and adequate stock cover of raw materials.
The Chemicals division out turn for the year will be driven by a favourable product mix and solid logistical support. However the resurgence of COVID 19 pandemic is cause for worry as it affects key markets of the chemicals division.
On the Zimbabwe Stock Exchange, General Beltings is sitting on market cap of $91.2 million with a year to date gain of 608.33%. The company sits on PE of 4x and PBV of 6.65.