Harare – National Tyre Services (NTS) has issued a trading update for the 1st quarter ended 30 June 2019 among the major highlights being a 51% decrease in the volumes of tyres sold compared to the previous quarter ended 30 June 2018.
“The trading environment was characterised by continued shortages of foreign currency, steep increases in year-on-year inflation and reduced aggregate demand as businesses and consumers adjusted to the challenging environment,” the Company’s Secretary Stewart Mandimika said in a statement.
“Productivity was negatively affected by power outages.”
During the period under review, re-treading line volumes decreased by 10% compared to the prior year.
The Company also recorded a 36% decrease in services lines volumes during the review period compared to prior year.
Despite the subdued volumes, the Company’s year to date revenue came in at ZWL$8.6 million which was 42% above budget and 113% above the previous comparable quarter.
“The Company remains profitable and positive cash flows were generated by the business in the quarter under review,” Mr Mandimika said.
“We assume the trading environment will remain the same in the short-term.”
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.