Willdale buoyant despite revenue slump
SAMANTHA MADE
Willdale Limited, Zimbabwe’s largest brick manufacturer, remains optimistic about a second-half turnaround to rescue its full-year performance after a challenging first half marked by a 48% plunge in revenue and an operating loss of $1.8m.
The company attributed the downturn to persistent working capital constraints and intensified competition—especially in the common plaster brick segment—which drove down both production volumes and average selling prices.
“Revenue for the period declined by 48% compared to the same period in the previous year. This decline was driven by a 30% reduction in volumes, resulting from working capital constraints that limited production, and a 26% drop in average prices due to intensified market competition—particularly in the common plaster brick segment.
“These challenges, coupled with ongoing cost pressures, led to an operating loss of $1.8m.
“A turnaround is anticipated in the second half of the year when volumes and profitability are expected to improve,” said Willdale Chairman Brian Mataruka.
Despite narrowing the loss from $3.7m recorded during the same period last year, the company’s outlook has drawn cautious responses from investors, many of whom question the feasibility of the projected rebound given continued financial strain.
Total equity fell by 10% to $21m, while total assets declined marginally to $32.6m, compared to the same period in 2024.
The board’s decision to withhold dividends—widely seen as a prudent move under current conditions—has nonetheless heightened scrutiny over Willdale’s liquidity position and its ability to sustain operations and finance growth without further erosion of shareholder value.
Market analysts warn that for Willdale to execute a meaningful recovery, it must urgently address its production bottlenecks, stabilize pricing dynamics, and secure adequate working capital—whether through improved receivables collection, external credit lines, or strategic partnerships.
Management, however, remains bullish. The company says its ongoing initiatives to improve operational efficiency and contain costs are beginning to show promise and are expected to support a stronger performance in the latter half of the financial year.
