Willdale FY profit jumps 37.6%
CLOUDINE MATOLA
Listed brick-maker, Willdale Limited’s net profit grew by 37.6% to ZW$8.304bn in the 12 months to September 30, 2023 from ZW$6.037bn reported in the prior comparative period, in spite of significant headwinds such as debilitating power cuts, Business Times can report.
Cleopas Makoni, the board chairman, said production and sales volumes in the year under review were adversely affected by crippling power cuts.
Moreover, sporadic power interruptions that persisted throughout the fiscal year had an impact on throughput and efficiency.
Revenue for Willdale grew by 106% to ZW$37 bn in the reviewed period from ZW$18bn reported in the previous year.
According to Makoni, the amount of exchange losses on foreign currency denominated accounts increased from 2% in 2022 to 21% of revenue throughout the reviewed period.
Despite the challenging economic conditions, Willdale has reported strong cashflows.
“Despite the operational and economic challenges, positive net cash flows amounting to ZWL3.6 billion was recorded compared to ZW$1.38bn in 2022 were generated from operations,” Makoni said.
He claimed that during the year under review, there was a comparatively high demand for bricks due to the building of shopping centres, educational institutions, and new homes.
Volumes were, however, 5% below the prior year largely due to supply side challenges caused by electricity shortages.
Margin continues to rise as a result of the push towards higher margin brick kinds. In spite of growing competition, the brand maintained its position as the industry leader, Makoni said.
In order to increase the company’s capacity utilisation and efficiency, Makoni said, the electricity supply must be improved.
“However, electricity supply must improve in order to boost capacity utilization and efficiencies and put more bricks onto the market,” he said.
He stated that in order to increase the company’s income and profitability, they would take advantage of the current boom in the building of residential and commercial structures, as well as infrastructure for educational purposes.
