GB Holdings optimistic of profitability in FY22

25 Nov, 2022 - 00:11 0 Views
GB Holdings optimistic  of profitability in FY22

eBusiness Weekly

Business Writer

GB Holdings expects a significant recovery in the fourth quarter underpinned by a strong order book at the rubber division and consistent demand at the Chemicals Division, company secretary Patrick Munyanyi has said in a trading update for the third quarter of 2022.

To be able to meet demand the firm
has secured sufficient raw materials to convert the orders with some expected to spill into the next financial year, said
Munyanyi.

“Overall the company is expected to post a profit for the year and will remain a going concern.”

Commenting on the third quarter, Munyanyi said the shortages of liquidity in local currency and the high-interest rates constrained operations due to high debtor default and inability to access additional local funding.

In addition, the quarter witnessed accelerated dollarisation of local expenses and increased operational costs.

However, total volumes for the third quarter to September at 690 tonnes were 7 percent up on prior year same period of 644 tonnes.

According to Munyanyi this was attributable to the market recovery efforts in the Chemical division whose volumes were 14 percent up when compared with the same period the prior year.

The rubber division volumes dip of 3 percent was a result of delayed raw materials supplies in the middle of the quarter.

As a result, turnover at US$3,539 million grew by 9 percent from the prior year’s US$3,237 million.

Munyanyi said the firm was able to meet demand in the third quarter due to stakeholder relationships that assisted the company to model a sustainable raw materials supply structure for the short term whose benefit would be felt in the fourth quarter of 2022.

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