NTS volumes dip 20%
RYAN CHIGOCHE
Listed tyre retailer and distributor, National Tyre Services (NTS), reported a 20% decline in volumes in the quarter to June 30, 2022 to 41 376 from 51 855 achieved in the prior comparative period.
Company secretary, Stewart Mandimika, attributed the dip in performance to new tyre sales and service volumes, which declined by 26% and 18% respectively.
Crippling power cuts and foreign currency shortages, which affected their tyre imports in the reviewed period, the company said, worsened the situation.
“Overall new tyre sales volumes for the first quarter declined by 26% due to foreign currency inadequacies affecting importation of tyres from China and India (while) services volumes for the period decreased by 18% compared to same period last year, as power outages affected branch operations during the period under review,” Mandimika said.
However despite the headwinds in the obtaining trading environment NTS realised a 6% volume growth in retreadings compared to the sameperiod last year.
Sales volumes for premium tyres also grew by 36% during the period under review.
On the outlook NTS is confident that the government will implement progressive policies, which will stabilise the local currency and build market confidence.
