HARARE – National Tyre Services saw an across the board improvement in volumes in the first quarter to June 30, 2021 buoyed by an improved economic environment.
According to the latest trading update from the group, overall unit performance grew by 163% during the period with the company attributing the growth to survival strategies pursued under a coronavirus operating environment.
Total units were at 51 855 from 19 709 in the previous year ago quarter.
New tyre volumes increased 162% to 11 952 units when compared to the same period last year, driven by stock availability and focused marketing initiatives.
The company said notable improvements in the economy, which included good grain harvests and a drop in the consumer price index, for the fifth straight month to 106.6% in June 2021 spurred demand for tyres.
However, there was a slow down in trading as a key segment for the tyre business – cross border and intercity buses – were still under Covid-19 restrictions. Trucking operations improved during the period under review when compared to the same period last year as Government imposed less restrictive measures to allow trucks to operate during the Covid-19 hit trading environment.
Retreading volumes grew by 75% compared to the same period last year due to increasing demand from retreading customers.
A 160% growth in tubes volumes was recorded in the period under review when
compared to the prior period due to the high demand of tubes from the agriculture
The company said it is optimistic that the budget will be achieved by the end of the trading year