Willdale sales succumb to depressed demand in the economy


  • Sales volume decline 23% HY19’
  • 76% Capacity utilization despite power challenges
  • Interest expense slumps 1 011%
  • Land disposed for $ZWL25 mill PAT

The only ZSE listed Brickmaker, Willdale reports a 23% decline in sales volumes for the six months to 30 September 2019. Feeding the trend is a harsh macro-economic set-up characterized by hyper-inflation, forex shortages and a rapidly weakening exchange rate on the interbank market system.

However, Revenue mounted 8% to ZWL65 million above the previous year comparative period driven by inflation which registered 207% in the month of September. Total Comprehensive Income came in at ZWL77 million against ZWL5 million in the comparative period of 2018.

The Brickmaker’s Chairman Mr. Cleophas Makoni  lamented the prevailing economic conditions in a statement accompanying the results:

“A volatile operating environment characterized by regular government policy changes, high inflation and shortages of electricity and foreign currency presented operational challenges to the business.”

Despite the power hurdle, fire production increased 7% while capacity utilization averaged 76% over the half-year. Improved plant availability, material sourcing and production efficiencies are said to be responsible for the good margin as the manufacturer’s operating profit came in at ZWL43 million.

In addition, the firm disposed of a piece of land which yielded a profit after tax figure of ZWL25 million which was utilized to settle interest-bearing debt following a shareholder’s nod in May of 2019. Resultantly, the firm’s net interest expense plummeted 1011% from ZWL3 million in 2018 to just ZWL0.27 million in 2019.

Willdale’s Capital expenditure for the half-year was recorded at $ZWL4 million which was funded by cash flows generated from operations.



Eben Mabunda

An Investment Analyst and Business Anchor for Equity Axis. Eben is passionate about the innovative digital space on the continent,  tourism trends, and real estate developments in Zimbabwe. He also has a comprehensive understanding of the operations of listed companies on the Zimbabwe Stock Exchange- across all sectors. Eben is an award winner of "The Vice-chancellor's Inno-preneur Award," an accolade in innovation and business entrepreneurship from the Vice-chancellor of the University of Johannesburg.

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