HARARE – Willdale Limited reported a 24% increase in inflation adjusted revenue in the third quarter to September driven by volume growth and price adjustments.
According to the group’s trading update, sales volumes for the group were 49% higher above the prior year driven by individual housing development projects. As a result, year to date volumes are 12% above prior year.
Production had been ramped up to replenish stocks in view of the rainfall forecast of above normal to normal rainfall for the impending quarter. “Closing stocks are at acceptable levels for this time of the year.”
Year to date revenue increased 22% compared to the same year ago period.
The group noted that the opening up of the economy following relaxation of lockdown conditions, stability in key economic fundamentals and the renewed optimism in housing development would spur demand for bricks into the future.
There has been an all round recovery in the construction and aligned sectors with most of the companies reporting improved revenue and profitability. The limiting factor for Willdale is its capacity to capture the momentum given its past capitalisation challenges.
Nevertheless, the environment presents a chance for the group to strengthen its market position as foreign and small scale operators withdraw.