Turnall Holdings Limited’s profit after tax dipped 82% to ZWL$28m in the half-year ended June 30 from ZWL$153m recorded in the same period last year on low revenue despite the materials concern having culled operating expenses.
Turnover was down 30% during the period to ZWL$203m from ZWL$291m.
Volumes in the first quarter were 45% above the same period last year. Volumes in Q2 were 37% lower than the same period last year due to Covid-19 restrictions, the company said.
Operating activities generated ZWL$59m cash of which ZWL$46m was invested into working capital, ZWL$6m on capital expenditure and ZWL$1m on loan repayment. Export volumes were flat at 3% of the total volume.
“The company did not export in the second quarter as the supply chain of imported raw materials was disrupted by border closures and limited international logistics movement,” board chairman Bothwell Nyajeka said in a statement accompanying the financial results for the period.
Gross profit percentage was 41% compared to 42% in the same period last year. Operating expenses were ZWL$56m, down 28% from the same period last year.
In the outlook, Nyajeka said the short to medium term prospects of the business was dependent on the duration and severity of the Covid-19 pandemic and measures implemented to contain the virus.
“The combination of Covid-19 pandemic and hyperinflation is expected to make the trading environment difficult for the business and its customers in the second half of the year,” he said.
“Sales volumes for July and August recovered from April and May’s Covid-19 constrained levels and management has implemented measures to ensure business continuity and viability in the uncertain environment and will continuously review these measures.”