Talkmore Gandiwa/Tadiwa Musiyiwa
HARARE – National Tyre Service said its new tyre volumes in the five months to August rose 88% as stock availability and focused marketing improved.
In a trading update for the period, NTS said the group’s performance remains on an upward trajectory, despite operating under the Covid-19 strain and the economic challenges affecting the country.
The company registered growth in revenue and unit performance and managed to retain key retreading fleets, resulting in increased volumes, by 60%, compared to the prior year.
During the period under review, total sales were up 74% with new tyre sales increasing significantly by 88% to 21 004 from 11 168 and services by 71% to 57 756 from 33 723 same period last year due to improved stock supply and focused marketing programs.
NTS said overall unit performance grew by 74% during the period under review as marketing continues to employ strategies to sustain the business under a challenging operating environment.
Retreading volumes increased by 60% to 6953 from 4 349 compared to last year, driven by improved rubber supply and focused key account management programs to retain big fleets.
“Road rehabilitation programmes are also visible in and around major cities. Roads around NTS Kelvin and Cripps branches were rehabilitated during the first quarter of 2021-2022 aiding accessibility and reduction in congestion to these branches” said NTS.
The company is targeting to have 20 branches operating by the end of 2022. NTS re-opened the Hwange branch to service the growing mining sector in Matebeleland North and renovated and re-branded Autodrive branch in Harare in August 2021.
“Chegutu branch is scheduled to re-open in the current Q3 2021/22. Renovations and preparations to open the branch are in progress. Victoria Falls branch is scheduled to open during this financial year. There are also plans to re-open Marondera and Bindura branches before this financial year-end”.
The company predicts an increase in demand for new tyres and retreading business driven by the growing vehicle population in the country and growth in the mining and agriculture sectors.
“The rainy season is upon us, and we anticipate strong demand for Agric and OTR tyres” said NTS
“New market development through new branches being re-opened will give us a wider national footprint and provide market share and volume growth opportunities. We remain optimistic and bullish to grow the business, going forward.
However, the “company said July looting disturbances and burning of properties in South Africa affected stock supply to Zimbabwe as the movement of trucks was limited.
NTS also said erratic electricity supply continues to affect their factory production, but management took mitigatory measures and changed to night operations to improve efficiencies.