Willdale suffers blow in Q2 performance as COVID-19 hits

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  • Volumes dropped by 62%
  • Brick production was affected by COVID-19 induced lockdown
  • Production has been at below 50% of total capacity

Harare – ZSE-listed bricks manufacturer Willdale Limited registered a massive drop in sales volumes in the quarter ended 31 March 2020 (Q2 2020).

Volumes sold in the period under review were 62% below the prior comparable period.

The dip was attributed to a decline in effective demand and the effects of the COVID-19 pandemic and subsequent lockdown.

However, year to date volumes were 16% above the prior year’s, driven by sales to new cluster housing projects.

The Company stated that the COVID-19 induced lockdown affected the level of production and activity in the brick and mortar industry.

“Several projects remain on the cards and will be pursued post-COVID-19”, the Company said.

Willdale resumed production towards the end of April upon the loosening of lockdown restrictions although at below 50% of its capacity.

The Company however says it has put in place measures to gradually resume operations to full capacity while minimizing the risk of transmission of the COVID-19 virus among all its stakeholders.

Going forward, Willdale expects to the disruptions caused by the COVID-19 pandemic and subsequent lockdown on production and sales to continue for the foreseeable future.

However, abundant opportunities in housing and infrastructure development will continue to be pursued and these present an opportunity to move away from the vulnerable position the business was facing as a result of the COVID-19 induced lockdown.

Equity Axis News

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