eBusiness Weekly
Michael Tome
ZIMBABWE Stock Exchange-listed brick maker, Willdale says it registered a 32 percent volume growth for the year to September 2021 buoyed by individual house construction.
The brick-making concern said cluster and individual housing developments both significantly contributed to the surge of the company’s product uptake.
Willdale also indicated that the Government’s drive to construct affordable housing under the National Development Strategy 1 (NDS) to reduce the housing backlog was a contributory factor in realising better volumes.
The period under review saw a 19 percent increase in production volumes compared to the prior period despite Covid-19 presenting disruptions as instituted lockdowns limited business and social activities.
Given the encouraging performance in the course of the period the brick-making firm hinted that it remains optimistic that housing development will continue to drive volumes and revenue in the short to medium term.
In a statement accompanying the financials, Willdale board chairman Washington Chidziwo noted that the company was on a strong footing given its diverse product offering and noticeable desire to provide decent accommodation by the Government and some private sector players.
“Housing development contributed most to sales with cluster and individual housing topping the list of projects. The brand remained strong throughout the operating regions riding on consistent quality and a wider range of brick types
“The growing appetite for modern housing and Government’s drive to reduce the housing backlog under the NDS 1 will drive demand for bricks and related materials in the year ahead,” said Mr Chidziwo.
In the said period, Willdale’s inflation-adjusted revenue for the year grew to $1,234 billion, compared to $904 million in 2020 translating to a 37 percent, which was corresponded to an increase in sales volumes.
Other income comprising largely of exchange gains contributed $32 million.
Profit after tax closed the year at $177, 8 million an improvement from $32,935,986 recorded in the prior comparable period while operating profit stood at slightly increased to $251,93 million from $251,87 million posted in 2020 after $29 million (compared to $13 million in 2020) deductions to depreciation of property, plant, and equipment.
The company, however, bemoaned the continued hike in the cost of living as it exerted pressure on the company through wages rise resulting in a cost to income ratio that was higher than budgeted.
Willdale lauded the Government spearheaded vaccination programme saying it had availed a favorable trading environment that stimulates business activity.
“A vaccination programme sponsored and driven by Government and strict adherence to prescribed measures helped ease the impact of the pandemic leading to relaxation of lockdown conditions by the end of the financial year,” he said.
The company declared a dividend of 2,70 cents per share.
Willdale manufactures and markets a range of clay brick products for the Zimbabwe building and construction sector. Its clay brick range includes face brick, semi-face brick, common brick, and paving bricks for walkways, patios, swimming pool surrounds, and garden landscaping.
The company has a range that includes economy plaster, special ground solutions, and decorative building products which include window sills, faggots, and klompies.
