- Production grew by 3%
- Sales volumes were down due to suppressed demand in HY2020
- Company remains under judicial management
Harare- Border Timbers’ lumber production in the nine months to 31 March 2020 grew from prior comparable period, after the Company has been recording declines in the prior trading periods.
Lumber output in the period grew by 3% to 43 828 cubic meters from 42 752 recorded in the same period in 2019.
The Company attributed the growth to the enhanced production processes at the Charter sawmill which in the previous quarters has been hampering the growth in lumber production due to issues that include power shortages and machine breakdowns.
Treated poles however were lower than the prior comparable period at 9 434 cubic meters against 10 137 cubic meters achieved in the same period in 2019.
The treated poles reflect a decline in production and sales volume compared to the same period prior year due to lower demand in the first half of 2020.
Total sales volumes were down by 11% from 57 212 cubic meters in the prior comparable period to 51 508 cubic meters in the period under review.
Revenue for the nine months grew by 777%, driven by better average selling prices (ASP) on both lumber and poles while loss for the year has been caused mainly by unrealized exchange losses primarily from a foreign loan.
Meanwhile, the Company remains under judicial management for the foreseeable future as no finalisation has yet been reached from ongoing discussions with the other party to claim and with Government.
On the outlook, the Company said its future profitability cannot be presently ascertained as the COVID-19 pandemic is estimated to have a material adverse effect on Zimbabwe.
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