Plastic pipe manufacturer, Proplastics Limited managed to withstand Zimbabwe’s volatile economy registering a gross profit of $8,895,568 in 2018 up from $4,801,711.
Zimbabwe faced unstable price increases accompanied by foreign currency shortages late year.
“Whilst we remain optimistic about the future, the operating environment remained very challenging throughout the year,” Proplastics Chairman Gregory Sebborn said.
“The single most difficult challenge faced by the Group was securing foreign currency for the importation of raw materials and capital equipment.”
The company’s Chairman said Zimbabwe’s economic challenges also negatively impacted on the construction of Proplastics’ new factory.
“Notwithstanding the challenges, we proceeded with construction and I am pleased to announce that the project will be completed in the first half of 2019,” Sebborn explained
“Its completion will improve production efficiencies, thereby positioning the Group well both domestically and in the region.”
“The new factory is now 97% complete and the focus during the first half of 2019 will be on bringing in the required pieces of equipment in order to make it fully operational,” said Sebborn.
The company Chairman also said demand for the Group’s products was high for the greater part of the year, but was negatively affected by the economic instability that escalated in the last quarter.
“Notwithstanding that setback, the Group posted a solid performance overall for the period under review,” Sebborn said.
“From the last quarter of 2018, demand has generally remained subdued into the first quarter of 2019.”
“Revenue at $24,091,989 was 50% up on previous year, with volumes up 5% driven by relatively strong demand during the year, although declining in the last quarter,” the Chairman revealed.
Despite challenges, Proplastics’ financial position remains strong with total assets amounting to $21,163,981 according to the company’s chairman.
“Although we welcome the recent changes contained in the monetary policy statement by the central bank, we are still to see its impact in stimulating business performance and easing foreign currency bottlenecks,” Sebborn said.