Increased demand bolsters Turnall performance in Q1 2020

0
285
  • Sales volumes grew by 45%
  • Export sales volumes rose by 4%
  • Production volumes increased by 17%

Harare – ZSE listed building and piping products manufacturer Turnall Holdings posted a buoyant volumes performance in the first quarter ended 31 March 2020.

According to a trading update, the Group’s sales volumes for the quarter were 45% above prior year driven by the increased demand for its products during the period under review.

Also, the Group’s export sales volumes were 4% of total turnover up from nil registered in the previous year and the exports were mainly made up of non-asbestos roofing products which were introduced in the second quarter of the previous year.

Turnall also highlighted that production volumes for the period under review were 17%  above the same period last year although they increased by a lower percentage compared to sales volumes as the Group closed the previous year with significant volumes of saleable stocks.

“The Group benefited from the availability of stocks during the period and a strong appetite for shelter which allowed construction projects to continue in a period when construction activity I normally subdued.” the Group said.

In light of COVID-19, the Group said while it was allowed to trade under the partial lockdown regulations, the selling and distribution of its products have been curtailed by the restriction of movement and restrictions on purchasing non-essential products.

The impact of the coronavirus on the Group’s supply chain is minimal as the Group had significant stocks that had been shipped when the lockdowns started.

Turnall, however imports most of its raw materials and spares form Europe which was severely affected by the pandemic.

Meanwhile, the Group’s management forecasts to report a positive financial performance for the second quarter and half year under the current trading conditions although the Board acknowledges that there are many uncertainties that make it difficult to estimate the future impact of COVID-19 on the financial performance and financial health of the business.

Equity Axis News

LEAVE A REPLY

Please enter your comment!
Please enter your name here