Willdale eyes export markets
LIVINGSTONE MARUFU
Listed brick maker Willdale Limited is eyeing new markets in the region to generate foreign currency for local operations as the environment has remained volatile and challenging due to price distortions in the market, an executive has said.
Willdale chief executive officer, Nyasha Matonda, said the local environment has remained volatile and challenging and it was critical for the company to venture into regional markets.
“We will pursue our export drive as soon as cross border trading normalises in the shortest possible time,” Matonda said.
In its trading update for the five months to February 2021, revenue for the company was above the previous comparative period due to volume growth and price adjustments.
Willdale’s sales volumes in the reviewed period increased 34% compared to the prior period driven by an increased demand for bricks as activity in the housing development projects picked up following relaxation of the Covid-19 induced lockdown restrictions.
The company, Matonda said, was geared to cash in on the enhanced demand and increased activity in the construction industry.
The good performance in the reviewed period was a continuation from impressive sales volumes during the previous period.
Matonda said the company enjoyed uninterrupted power supply.
The relaxation of Covid-19 induced lockdown restrictions has led to the resumption of various projects, resulting in a spike in demand for bricks.
The demand, Matonda said, has come from cluster home development and various infrastructure development projects across the country.
The company expects to benefit from the government’s building of schools’ infrastructure under the National Development Strategy.
He said Willdale plans to complete its plant, which will see the company improving its capacity, product quality, despite the project being negatively impacted by the Covid-19 pandemic.
Willdale has been operating during the period under review although it was done under strict operating conditions adopted to minimise the transmission of the virus.
However, the company’s operations continued under strict measures to minimise the risk of transmission of the epidemic.
The company said the opening of the economy following relaxation conditions, stability in key economic fundamentals and the renewed optimism in the housing development are expected to spur demand for the bricks into the near future.
Willdale said it remained ready to supply quality bricks for infrastructure projects across the country.
The company anticipates sustainable profitability for the business into the foreseeable future.
In the outlook, Willdale said its prospects remained bright due to the demand for infrastructure in tertiary institutions. The company, Matonda said, has capacity to deal with high demand for bricks.
