Border Timbers’ lumber productions in the 9 months to 31 March 2019 went down to 52,889 from 65,686 in the same period, mainly due to general power outages and Cyclone Idai.
Cyclone Idai destroyed property worth around US$2 billion in Zimbabwe, Mozambique and Malawi.
“The knock-on effect of the cyclone resulted in the Charter sawmill operating for only half of the month thereby negatively affecting both production and sales into the market as the road infrastructure was decimated,” Judicial Manager, Peter Lewis Bailey said.
“Treated poles reflect a decline in both production and sales as they are mostly tender based and there has been a general slowdown in the export markets hence low production compared to comparable period March 2018.”
Despite low lumber production, Border Timbers sales volumes was higher due to an increased demand.
The company’s revenue of the 9 months leading to 31 March 2019 grew to US$20,747,235 from US$15,692,368 made in the same period in 2018.
Net profit of the periods under review also went up to US$3,450,856 from US$3,076,702.
Cash profit before tax also went up to US$6,178,422 from US$3,842,432.
Giving an update on restoration after Cyclone Idai, the Judiary Manager in charge of Border Timbers says electricity supply has been restored.
“The major challenge to the business going forward is the rehabilitation of the road’s infrastructure linking the Chimanimani operations to markets, the effect of which will be greatly felt if the permanent fixes are not done before the rains commence fully in six (6) months-time,” Bailey says.
“We hope that through the intervention of local authorities this will be given.”
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