GB Holdings buoyant
RYAN CHIGOCHE
Listed conveyor belts manufacturer, General Belting (GB) Holdings, says it will unlock opportunities triggered by global logistical problems caused by the on-going Russia-Ukraine conflict.
GB company secretary, Patrick Munyanyi said GB was optimistic to register improved profitability as local companies will be compelled to procure locally.
“…The Russia-Ukraine conflict became a worldwide flashpoint, resulting in global logistical restrictions and delayed raw material deliveries, among other things.
“The absence of a cessation in the Russia – Ukraine conflict,logistical delays will continue to disrupt the flow of materials into the sub-region. Therefore, local firms will be compelled to procure locally in order to avoid long lead times and working capital cycles,’’ Munyanyi said.
He added: “GB Holdings will focus on value preservation through continued profitability in the traditional markets which are expected to be buoyed by improved mineral commodity prices and increased local demand as firms opt to procure locally.
GB sales volumes stood at 307 metric tonnes in the reviewed period, which was a 48% increase from 207 metric tonnes achieved in the prior comparative period.
Turnover grew 23% to ZWL$ 210m in the reviewered period from the ZWL$170m recorded in the same period in 2020.
However the company reported that operating profit was lagging behind the budget because of their gross margins and operating expenses which were under severe pressure as a result of parallel rate indexing of local costs.
