Turnall loss widens
CLOUDINE MATOLA
Turnall Holdings Limited’s loss widened to US$3.2m for the year ended December 31, 2024, from US$1.5m in the prior year, Business Times can report.
The listed roofing and building materials manufacturer suffered a drop in revenue to US$12.04m, down from US$12.56m in 2023, as liquidity constraints and the El Niño-induced drought dampened demand for its products.
Despite the loss, Turnall board chairman Grenville Hampshire said the company delivered stronger operational cash flow.
“In spite of the loss-making position, the Group managed to generate USD1.5m from operating activities, up from a negative USD6.4m in the previous year,” Hampshire said.
The operating expenses-to-sales ratio climbed to 48%, from 35% a year earlier, driven by inflationary pressures particularly felt in the first and last quarters of the year.
Capital expenditure jumped to US$3.2m in 2024 from US$567,927 the previous year, as the company invested in a new fibre-cement plant and new templates for its Bulawayo sheeting plant.
Turnall also made a US$1.2m provision for obsolete and slow-moving inventory, which included expired raw materials and unsold pipes, largely due to shifting customer preferences.
Looking ahead, Hampshire expressed cautious optimism for 2025.
“There is hope for some recovery in 2025 due to the ongoing capital projects in the manufacturing and construction sectors coupled with an expected rebound in the agricultural sector on the back of the La Niña weather phenomenon,” he said.
“This recovery is expected to have downstream benefits for the other sectors in the economy. In addition, a stable exchange rate, low inflation as well as favourable international commodity prices for key minerals are expected to provide a conducive environment for doing business.”
However, Hampshire warned that several headwinds remain: “The cost of borrowing remains high, power outages are persisting, exchange rate disparities continue to cause pricing distortions and liquidity constraints continue to restrict economic activity.”
