NTS anticipates rising demand
BUSINESS REPORTER
Listed tyre retailer and distributor, National Tyre Services (NTS) is anticipating a rise in demand for its tyres in the run- up to general elections and the upcoming agricultural season.
Zimbabwe’s presidential, parliamentary and council elections are due on August 23. If required, there will be a presidential run-off on October 2.
Board chairman, Rutenhuro James Moyo said NTS has positioned itself to cash in on the upcoming elections.
“The monetary measures being implemented by the
Government to stabilize the local currency are bearing fruit given that the local currency is firming against the US Dollar.
Foreign currency exchange rates are stabilizing on parallel and auction markets. We are cautiously optimistic of continued stability in exchange rates, which will aid planning and business growth.
Industry is expecting that the current stability in power generation will continue to minimize production disruptions.
We are projecting increased demand for tyres and related product and services pick-up in the buildup to general elections and the upcoming agricultural season.
To capitalize on the obtaining environment, NTS will continue to focus on cost containment and enhanced market outreach programs to increase the inventory turnover ratio and improved profitability,” NTS chairman, Rutenhuro James Moyo.
He also disclosed that the availability of Dunlop tyres was “instrumental in us retaining our large corporate customer base during the year”.
As a result, premium sales in units increased by 14% over prior year.
He said NTS remains viable as the competitive space continues to be crowded by new entrants across the country.
However, Moyo said the budget brands segment was impacted by the restricted access to foreign currency which in turn affected product availability.
Retreading performance declined during the year, as the company managed to maintain presence in key retreading fleets.
NTS capability and capacity for excellent products and service in retreading continues to be preferred by the market.
Management continued to review business operations throughout the year to enhance overall performance and strengthen NTS’ competitive advantage.
NTS also widened the range of suppliers and revamped supply chain management to effectively manage costs and position the business appropriately for the future.
Sales revenue grew by 21% to ZWL$4.332bn in the 12 months to March 31, 2023 from ZWL$3.579bnreported in the prior comparative period.
The growth was largely due to the continued implementation of the turnaround strategy.
Total operating expenses were, however, maintained at prior levels at ZWL$2.170bn due to cost containment measures implemented by the company.
NTS suffered a loss of ZWL$577.2m in the reviewed period from a profit of ZWL$208.4m reported in the prior comparative period.
