LIVINGSTONE MARUFU
Listed brick maker, Willdale Limited, reported a steep profit decline in its full year to September 30,2020 as hyperinflationary and Covid-19 pandemic weighed heavily on the business, Business Times can report.
Inflation adjusted profit for the year declined sharply to ZWL$1.2m from $303.93m recorded in the prior comparative period.
Operating profit for the company halved to ZWL$166m during the reviewed period from ZWL$331m in 2019 after charging ZWL$8.7m to depreciation of property, plant, and equipment.
“Willdale posted a net monetary loss of ZWL$136.7m during the reviewed period from a loss of ZWL$12.02m resulting in the decrease of net profit for the period and operating profit,” board chairman, Washington Chidziwo said in a commentary accompanying the company’s financial results published this week.
Despite tumbling profits, revenue for the group, however, grew 19.5% in the reviewed period to ZWL$596.6m during the reviewed period from ZWL$499.3m achieved in the same period in 2019, driven by a 12% increase in volumes.
Willdale reported an exchange gain of $26m compared to $34m in 2019 due to volatility of the exchange rate prior to the stability in July last year.
The exchange gains were earned from translation of foreign currency denominated balances.
Chidziwo said the company lost about two months’ production during the reviewed period due to the Covid-19-induced lockdown.
Net cash flows generated from operations amounted to ZWL$125m from ZWL$72m in 2019 while capital expenditure for the year, which was all financed from internal resources, totalled ZWL$35m from ZWL$30m in 2019.
Fired production for the year declined by 20% compared to the prior year.
The firm expressed optimism the Reserve Bank of Zimbabwe auction stability will revive dormant opportunities in the construction sector.
Willdale expects the prevailing stability in the economy underpinned by a stable currency and declining inflation to stimulate property and infrastructure development in the short to medium term. A
