- Volumes increased by 38%
- COVID-19 enhanced manufacturing of hand sanitisers at the chemicals division
Harare – General Beltings Holdings (GHB) reported a volumes growth in the first quarter ended 31 March 2020 in spite of the foreign currency shortages and hyperinflation which exerted pressure on local input costs and pricing modules.
In a trading update, the company said volumes notched by 38% on prior year same period due to improved activity at the rubber division dominated by carried over orders as at 31 December 2019 prior year end.
According to the GBH the rubber division continues to improve its comparative position against regional manufacturers due to the continuous process enhancements and strategic alliances as well as regional economic dynamics which even the playing field.
The company however said volumes at the Chemicals Division were 36% lower than the same prior comparable period.
This was as a result of depressed downstream aggregate demand attributed to reduced disposable income.
The company continued operating as it was deemed an essential service during the national lockdown hence the Chemical’s division’s personal and institutional hygiene market segment recorded increased activity in the manufacturing of hand sanitisers and disinfectants.
The temporary decline in the tourism and travel industry is expected to dent the laundry chemicals business although the dent is anticipated to be partially offset by increased demand of personal hygiene chemicals.
The rubber division supplies the mining sector which has been identified by government as key to the post COVID-10 economic recovery plan and the company said its successful contribution to the recovery plan will depend on the extent the stimulus packages will unlock foreign currency and enhance a timeous flow of raw materials.
GHB said given the latent opportunities post the COVID-19 pandemic, it expects its current solvency position to improve and operate as a Going Concern for the rest of the year 2020.
GBH manufactures and distributes general-purpose and specialised reinforced conveyor beltings, and rubber and chemical products. Its product range includes rubber-covered belting, polyvinyl chloride (PVC) belting, light-duty PVC belting, solid-woven belting, transmission belting and conveyor belt rubber skirting. Its two major customers are Anglo-American Corporation and De Beers.
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