- Cumulative production volumes came in at 13,668m3
- Cumulative sales volumes were 16,707m3
- Total revenue was ZW$313 million
Harare – ZSE listed forestry and sawmilling company, Border Timbers Limited has experienced a decline in both sales and production volumes for the first quarter of their financial year which ended 30 September 2020 due to the negative effects of COVID 19 on operations.
According to a trading update issued by the company, production volumes for the three months to 30 September 2020 were an overall of 13,668m3 against an overall of 17,986m3 recorded during the same period in the prior year.
The total volume of poles produced for the quarter was 2,130m3 as compared to 2,621m3 recorded in the same period last year while Lumber production fell from 15,365m3 in the comparative period to 11,539m3 in the period under review.
Meanwhile, total sales volumes amounted to 16,707m3 in the reporting period against 18973m3 realized in the comparative period.
Pole sales amounted to 2,775m3 in the reporting period compared to 3,750m3 in the same period in 2019 while lumber sales came down from 15,223m3 in 2019 to 13,933m3 in the reporting period.
In monetary terms, total revenue was ZW$313 million for the period under review while that of the same quarter last year was ZW$372 million.
The company says this slump in volumes is a result of COVID 19 weighing in on operational efficiency.
“Lumber production is lower compared to prior year due to disruptions in production and logistical bottlenecks that were caused by COVID-19 lockdown restrictions,”
“Treated poles reflect a decline in production and sales volume compared to prior year, this was because of lower demand during Q1 of FY21 and the adverse effect of the Covid-19,” they reported in their update.
They however added that demand for lumber was very high in export markets but the company’s ability to meet it was being disrupted by the measures put in place by governments in the SADC region in a bid to contain the spread of COVID 19.
“Demand for Lumber remains very high both in the local market and the export market, hence significant positive movement is expected as the economies return to normalcy.”
“The measures that were implemented by governments in the Southern Africa regional export market, affected the business’s supply chain, reduction in aggregate demand and logistical bottlenecks,” they said.
Equity Axis News.