LIVINGSTONE MARUFU
National Tyre Services (NTS)’s overall volumes almost doubled in the quarter to December 2020 owing to good rains experienced during the reviewed period which resulted in high demand for agricultural-related tyres.
The magnitude of the jump was a surprise as industry players including NTS had been assuming demand would slow due to the devastating impact of Covid-19 induced lockdown, which ravaged operations during the reviewed period.
“Overall, volumes for the period October to December 2020 increased by 99% compared to the same period last year, despite Covid-19 challenges faced,” company secretary, Stewart Mandimika said.
Volumes of new tyres sold in the reviewed period rose 213% compared to the same prior comparative period. Mandimika said the company continued to implement robust marketing strategies to promote sales complemented by good stock availability.
Retreading volumes for the period increased 21% in the period under review while volumes in the services category increased 87% compared to the same period in the prior year driven by good service delivery to customers.
Mandimika said the movement of stock into Zimbabwe was, however, curtailed by cyclones that delayed berthing of ships at Beira with stocks from China and India.
He said the strong cyclones have paralysed international cargo transportation recently, with NTS’ Harare-bound stocks being trapped on the high seas.
Mozambican harbours sunk several metres underwater during the period, after floodwaters swept ashore, with Maputo ordering mass evacuations.
Tropical Cyclone Eloise tore through Mozambique on January 23, 2021, less than a month after Tropical Storm Chalane hit the coast on December 30, 2020, trapping ships offshore and this affected the company’s supply chains.
Zimbabwe is experiencing foreign currency shortages despite the introduction of the foreign currency auction system in June last year.
The auction system is failing to provide adequate foreign currency to the industry who wants to import critical raw materials.
“It is hoped that the foreign currency auction platform will grow further to cater for the industry’s needs.
“Key areas to watch, to ensure the continued viability of the business, will be cost control, an uninterrupted supply chain and avoidance of loss of capital against inflationary pressures,” Mandimika said.
