RYAN CHIGOCHE
Listed timber producer, Border Timbers Limited, has widened its loss to ZWL$3.2bn in the 12 months to June 30, 2021 from ZWL$487m owing to adverse effects of Covid-19 pandemic, Business Times can report.
The development means the future of the business operations remain uncertain.
Revenue for the year also declined by 13% to ZWL$1.5bn from ZWL$1.7bn in the previous year.
Total volumes declined to ZWL$43m in the reviewed period from ZWL$63m in 2020.
Production for Border Timbers, which is under receivership, slumped 35% to 39236 cubic meters from 62 317 cubic meters produced in the prior comparable period.
“Lumber production is lower compared to the prior year due to disruptions in production and logistical bottlenecks that were caused by the Covid-19 pandemic. Demand for lumber remains very high both in the local market and the export market. Treated poles reflect a decline in production and sales volume compared to the prior year, this was because of lower demand since the advent of Covid-19,” judicial manager, Peter Bailey said.
Bailey said the economic environment during the first quarter of the reported period was also laden with inflation as there was a huge gap in the exchange rates of the local and foreign currency.
However, as the economy has since improved and the exchange rates are now a bit stabilised the company is anticipating a change in fortunes. The company said since lockdown restrictions have been relaxed they are going to benefit from the export market.
Going forward, Bailey is confident that the economy is going to recover as the government ramps up the vaccination exercise although they are not sure of how the pandemic will affect businesses in The future.
“The impact of Covid-19 on future business operations remains uncertain. Management is quite optimistic that the efforts by the government to vaccinate the population will go a long way in ensuring that the economy rebounds and economic activity normalizes.
Established in 1979, Border Timbers, operates five forest estates and three sawmills; with the principal products being pine and eucalyptus.
The company is the amalgamation of three organisations; Border Eastern Forest Estates, Renfee Timbers (Pvt) Limited and Forestry Management Services.
The company is a subsidiary of the Rift Valley Corporation, boasting a plantation size of 47 800 hectares.
The forest estates are in Sheba, Charter and Tilbury; with a combined annual output of over 160 000 cubic metres, 95% of that is pine.
Rough sawn timber is processed at factories in Mutare, and sold directly to the public.
The Paulington Factory manufactures products for the veneer, plywood and blockboard market, and the Nyakamete Factory produces doors, shelves and other timber products for export.
