- Volumes in April reduced to almost zero following national shutdown
- Revenue grew in both historical and inflation adjusted terms
- Margins remain under pressure
Harare – ZSE-listed electrical retail and engineering company, Powerspeed, saw growth in sales volumes in spite of disruptions brought about by the COVID-19 induced national lockdown in the quarter ended 30 June 2020 (Q32020).
In a trading update for the period under review, the Group stated that volumes were marginally higher than the same quarter in the prior year due to increased market share in a number of product groups.
This is despite erratic volumes throughput in the quarter as the performance in April reduced to almost zero for the great part of the month due to the national shutdown.
Government declared a 21-days nationwide lockdown at the end of March 2020 in a bid to curb the spread of the coronavirus, a move which put most business operations to a standstill thus affecting production and sales before the loosening of the restrictions.
The Group’s volumes however, recovered with substantial changes in product mix.
Revenue in the period rose substantially both in historical and inflation adjusted terms but profitability remains difficult to assess because of rapidly changing exchange rates and distorted indices.
The Group added that margins continue to be under pressure while expenses are rising with inflation and devaluation.
However, based on assessment of its balance sheet, the Group believes that it is continuing to build shareholder value in real terms.
On the outlook, Powerspeed said it will continue to focus on growth of shareholder value, with the confidence that it has the resources to survive short term business disruptions such as those it had in April 2020.
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