NTS Q3 volumes drop
LETTICIA MAGOMBO
National Tyre Services Limited reported a 36% volume decline in the quarter to December 31, 2021 to 38 732 from 52 608 in the prior comparative period owing to a harsh operating environment, Business Times can report.
Volumes for new tyres declined 29% to 8 931 in the reviewed period from 12 632 reported in the same period the previous year.
Other services saw volumes decline to 26 241 from 36 486 in the prior comparative period.
However, volumes for retreadings grew 2% to 3 560 from 3 490 in the same period in the previous year. The increase was attributed to marketing initiatives implemented by the company to support retreading customers during the period under review despite a challenging operating environment.
NTS’s company secretary Stewart Mandimika said acute shortage of foreign currency to import tyres, high inflation and crippling power cut adversely affected the company’s performance in the reviewed period.
“The company’s operations were constrained by the harsh economic climate given the negative effects of Covid-19 pandemic, surge in inflation and inadequate foreign currency to import tyres,” Mandimika said.
Power supply outages impacted production in our retreading factories, negatively affecting standard customer turnaround time,” the company secretary, Stewart Mandimika said.
He said NTS struggled to land stocks on time for the festive season selling due to challenges in obtaining adequate foreign currency.
In the outlook, into the future, Mandimika was optimistic NTS would do well following the intensified roll-out of Covid-19 vaccinations.
He said NTS will continue to look out for cost control, and hopes for an uninterrupted supply chain as well as the avoidance of loss of capital against inflationary pressures.
The company is also hopeful for the foreign currency auction platform to grow further to cater for the industry’s needs.
