Tiles producer, Turnall Holdings Limited’s export turnover for the year ended 31 December 2019 improved to ZWL$10.5 million contributing 5.0% of turnover from 0.3% in 2018.
Zimbabwe has been encouraging companies to export to create foreign currency.
“This (export turnover) was attributed to the Group’s export strategy that resulted in enhanced presence in the regional markets,” the company’s Chairperson Rita Likukuma says.
“In the prior year, the Group was exporting to Zambia only but increased its market coverage in 2019 to include Mozambique and South Africa.”
Turnall turnover for 2019 at ZWL$231.6 million was, however, 11% below 2018.
“The Group experienced depressed product demand during the year due to low disposable incomes as inflation increase during the year,” Likukuma says.
“Despite slightly improved demand in the second year, the Group was constrained by unavailability of foreign currency for the importation of raw materials, high power outages and shortages.”
Zimbabwe witnessed an increase in loading shedding due to energy shortages last year.
Going forward, Turnall will focus on increasing the usage of local fibre and reduce reliance on imported fibre according to Lukukuma.
“The Group continues to implement cost control measures to improve the viability of the business,” she says.
“The Group upgraded the fibre cement line to increase capacity and efficiency and plans to upgrade the NuTech fibre cement plant in order to improve the Group’s access of foreign market.”
Turnall will also focus on improving product offering to enhance competitiveness and will continue to prepay for imported raw materials and spares to avoid significant exposure to foreign borrowings and related exchange losses.
Turnall profit before tax was ZWL$99.4 million
The Group will implement technical cooperation initiatives aimed at improving product quality and productivity.
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