Turnall expands production capacity with new sheeting plant
STAFF WRITER
Turnall Holdings Limited, a publicly traded manufacturer of building and roofing materials, is set to enhance its production capacity with the installation of a new sheeting plant.
The addition is anticipated to significantly boost output while reducing production costs, particularly those associated with transportation.
These expectations were outlined by the company’s board chairman, Grenville Hampshire, in a statement accompanying a trading update for the quarter to September 30, 2024.
“Currently, civil works are ongoing in preparation for the installation of a new sheeting plant in Harare which will boost output, lower production costs and result in significant cost savings particularly in respect of transportation costs.
“The roofing tiles plant capacity is also going to improve through the injection of additional tile templates in the 4th quarter of 2024. Progress has been made in improving the operational efficiency of the tile plant and further gains will follow when the new templates arrive,” Hampshire said.
Hampshire said that in order to increase income, the company is putting strategies into place to improve the product.
The company also prioritizes cost containment and production efficiency.
“There are deliberate strategies being implemented to improve the product offering in an effort to grow revenues. Enhancement of production efficiencies and cost containment remain key focus areas as well for management and these efforts are starting to bear fruit. We remain committed to turning the group’s fortunes around and restoring it to profitability,” Hampshire said.
In the Quarter to September 30, 2024, Turnall’s fibre cement and concrete products grew by 14% to 9,728 tonnes due to improved production efficiencies and critical raw materials availability.
Sales revenue for the reviewed period increased by 6% to US$3.3m from US$3.1m prior comparative period as a result of change in the sales mix which was skewed towards the high value and low tonnage products.
Also, sales volume for the period under review declined by 7% to 8,537 tonnes from 9,132 tonnes recorded the same period last year due to change in the sales mix.
Furthermore, sales revenue for the nine months ended September 30 2024 grew by 5% to US$8.8m driven mainly by fibre cement products availability.
In addition, the company’s gross margin for Q3 was 19% against a prior year 16% due to change in the sales mix as the group enjoys higher on the fibre-cement products.
The company’s net cash inflows from financing activities was $1.6m due to loans received from the shareholders and financial institutions which were used to fund working capital and civil works for the fibre-cement plant which will be installed in Harare.
