Turnall’s FY2021 revenue up 31%

FAITH MADZINGA

Roofing and building materials manufacturer,  Turnall Holdings Limited, reported a 31% increase in revenue in the 12 months to December 31, 2021  to ZWL$2,1bn from ZWL$1,6bn despite a harsh economic environment.

Profit for the group increased to ZWL$422m in the reviewed period from ZWL$264m in 2020.

Turnall chairman,  Bothwell Nyajeka, said  the company priced its products  in both the United States dollars  and the Zimbabwe dollar.

Pricing the products in US dollars, Nyajeka said, helped the company to procure critical raw materials.

“The business performed well  inspite of the impact of Covid-19  lockdown measures  implemented by the government, liquidity constraints, subdued aggregate demand and pricing challenges due to the exchange rate disparities   which were in place throughout the year,” Nyajeka said.

He added: “The company was able to generate its own foreign currency  to fund its working capital requirements. These funds were used to import  raw materials and spares for use in production.”

Nyajeka also said the gross profit margin for the year increased to 41% from 33% recorded in 2021. This reflects that the executive’s success in generating revenue considering the costs involved in producing their products.

Capital expenditure declined to ZWL$16,9m in the reviewed period from ZWL$189,5m in 2020.

Turnall declared a final dividend of ZWL$ 0,04 per share for 2021 amounting to ZWL$19,7m to be paid on  April  26, 2022.

Nyajeka said global supply  chain disruption was brought about by the Covid -19 pandemic  which caused delays in the business.

The construction sector got limited activities in the first two months of the year due to the Covid-19-induced lockdown.

The government’s national vaccination programme has resulted in a flexible working environment and reduced Covid-19 deaths, he said.

Nyajeka is bullish  the business will continue growing and maximise shareholder wealth.

He said producing affordable  quality products and great customer service would remain the company’s top priority.

The company is largely focusing on moving forward, re- capitalising plants and reducing production costs, Nyajeka said.

“Turnall is to resume production of roofing sheets in Harare while reducing its costs of shipping finished products to its largest market.  Turnall is planning to create manufacturing jobs by commissioning a Glass Reinforced Plastic pipe plant which will also improve water supplies to the country,” he said.

“The new plants will replace exported pipes with local ones and create a base for export opportunities into the region.”