Turnall exports tumble
TINASHE MAKICHI
Listed roofing and building materials manufacturer Turnall Holdings’ exports slowed to 3% in the quarter to September 30,2021 on the back of regional lockdowns, Business Times can report.
Despite the challenge, Turnall is bullish on expanding its presence in the regional market.
“Turnall’s exports slowed due to regional lockdowns, consequent logistics disruptions as well as higher local market demand which outweighed our production capacities. The company continues to expand its footprint in the SADC region,” Turnall acting company secretary Zvidzayi Bikwa said.
Cumulative volumes for the nine months to September 30,2021 were flat at 13% .
Fibre cement building products contributed 79% of the sales volume for 2021, a 7% increase compared to the same period last year while fibre Cement pipes contributed 2% of the year-to-date sales volume for the same period.
Concrete roofing tiles contributed 19% of total sales volumes representing a 6% increase compared to last year.
In the outlook, Bikwa said there is good prospects for growth in the construction industry particularly at local authorities’ level and national government projects.
The company is optimistic that the business will post better results in 2021 despite the many challenges prevailing in the economic environment.
“This will be achieved through volume growth, cost containment and further realignment of business processes,” Bikwa said.
The inflationary environment is expected to continue up to year end while the use of multicurrency also presents many pricing challenges, and these will impact on profit margins and cash flows.
He noted that there was innovation in products and services during the period with an objective to offer continuous improvement in convenience and customer satisfaction through a rich product mix in roofing such as slates, ecotiles and pantiles is a priority.
Bikwa said the company was investing in a new model plant that will improve the product variation and automate production processes.
The migration from fibre cement pipes to glass reinforced pipe manufacturing is at an advanced stage.
He said the financial status of the company remains healthy and the impact of the Covid-19 pandemic has not created any serious issues from a solvency or liquidity perspective.
The prospects of the local construction industry appear positive, according to Turnall and the ongoing Covid-19 related costs and inefficiencies continue to affect global supply chains periodically, while the real cost push effects of transitioning out of a hyper-inflationary environment required continual evaluation and adjustment of the company’s business models.
The company delivered a positive volume growth during the period supported by ongoing projects participation and enhancement initiatives.
