- Measures to stop the spread of COVID-19 delayed importation of stocks
- Retreading volumes showed 16% decrease
Harare- ZSE-listed tyre retailer, National Tyre Services Limited (NTS), bemoans the volatile economic environment and the COVID-19 pandemic which affected the business’ operations in the year ended 31 March 2020.
In a statement accompanying the Company’s full year financial results, NTS Chairperson, James Moyo said retail operations faced a myriad of challenges in the period which included power cuts, local currency depreciation, foreign exchange shortages and the COVID-19 pandemic.
In addition, interventions to curb the spread of COVID-19 delayed importation of stocks as source countries were the hardest hit by the pandemic from the onset.
The Company’s sales in the period were 2% down from the prior comparable period at ZWL 150 million due to a decrease in business volumes.
Total operating expenses increased by 20% compared to the prior comparative period to ZWL 57 million.
Total assets increased by 7% compared to the previous comparative period with the main areas of growth being capital expenditure, improvement in bank balances and the increase in the right of use asset.
Moyo said the Company managed to retain retreading business from fleet customers through provision of valuable fleet management support services and availability of rubber.
“In line with that, retreading volumes showed a slight decrease of 16% from last year. It remained the cheaper option for transporters”, he said.
On the outlook, the Company said cost containment, staff welfare, safety and health will remain its priorities to preserve value and life as the year 2020 is unlikely to be a good year for many entities.
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