Border Timbers bullish on growth despite challenges
RYAN CHIGOCHE
Listed timber producer, Border Timbers Limited, is optimistic about the year ahead following its exit from judicial management in March this year despite posting a ZWL$1.3bn loss in the nine months to March 31, 2022
‘’With Imbeza Estate being FSC certified, it is expected that new markets will be opened, and plans are underway to get the other estates certified,” finance director, Lysius Karimanzira said in a trading update.
“During FY2023, old sawmilling equipment will be replaced with the latest technology in order to increase production efficiency.”
The certification of Imbeza Estate in the reported period, ensures best forestry management practices under FSC, the initiative is expected to give the company access to European markets, he said.
In its trading update for the nine months to March 31, 2022, Border Timbers Limited, reported a 5% increase in revenue to ZWL$1.8m from ZWL$1.7m in the prior comparable period.
Volumes for transmission poles increased to 7 108m3 from 6 195m3 against the prior comparable period.
The increase in volumes was attributed to marketing initiatives which saw an increase in the market share within the region.
However, lumber production was depressed as a result of power outages and the prolonged rainy season, which had an impact on harvesting operations and this resulted in a 7% decline in sales.
The demand for lumber remains high both in the local and export market, the company said.
The loss of forestry to fire was reported as the major risk to the company.
In the outlook, Karimanzira said the company is looking at ways to mitigate this risk by continuously reviewing and strengthening its fire patrol teams as well as upgrading the firefighting equipment.
The company is also focused on intensifying replanting activities, capitalising on the rains, and advancing the winter planting plan.
