Increased demand spurs Proplastics’ Q3 2020 sales

0
328
  • Sales tonnage grew by 64%
  • Exports’ contribution to total revenue up to 7% from 4%
  • Commissioning of new mixing plant set for Q4

Harare – Proplastics’ third quarter to September 2020 (Q3 2020) saw an increase in demand of the Group’s products, resulting in improved sales tonnage and sales volumes.

Sales tonnage for the quarter grew by 64% from prior comparable period while year to date volumes responded positively from a reduction of 18% in the first half of the year to 10% above similar period last year at the close of the third quarter.

Group Chairperson Gregory Sebborn stated that segmental contributions from irrigation, mining, merchants, civils, and borehole drillers registered positive growth in the third quarter.

Exports for the period grew by 75%, contributing 7% to total revenue from 4% in the same period last year.

Gross Profit margins, in historical figures, improved to 63% from 47% from the half year weighted average and as a result, the margins are now above the prior year levels.

“The growth in sales volumes and turnover supported by outstanding productivity from the new factory permeated through to a strong earnings performance for the quarter”, Sebborn said.

On the outlook, Sebborn stated that though supply gaps as a result of the global shortage of raw materials are to be expected beyond year end, management has put in place robust contingency plans to reduce these to the bare minimum.

He added that the Group expects the Engineers from Italy to be back in the country in the last quarter to commission the new mixing plant which will go a long way in enhancing factory efficiencies as was envisaged when the project was conceived.

Equity Axis News

LEAVE A REPLY

Please enter your comment!
Please enter your name here