Willdale’s operating profit tumbles as Covid-19 chokes production capacity

  • Production declines by 20%
  • Operating profit down 50%
  • Declared a dividend of 1.35 cents

Harare – Willdale Limited recorded a 50% decrease in operating profit to ZWL166 million for the year ended 30 September 2020 from ZWL331 million recorded in the previous year contributed by the charging of ZWL$8.7 million to depreciation of property, plant and equipment.

Willdale Limited manufactures and markets a range of clay brick products for the Zimbabwean building and construction sector.

The Company cited the challenges unfolding in the operating environment characterised by high inflation and the impact of Covid-19 which culminated in government induced lockdowns introduced in April 2020.

Fired production for the year declined by 20% compared to the prior year as a result of the time lost to Covid-19 induced lock down.

Meanwhile, revenue for the year increased by 19% to ZWL$596 million compared to the prior year which recorded ZWL$499 million, driven by the 12% increase in sales and marketing volumes.

Exchange gains amounting to ZWL$26 million were earned from the translation of foreign currency denominated balances and the net cash flows generated from operations amounted to ZWL$125 million up from ZWL$72 million.

The company declared a dividend of 1.35cents per share with respect to the period under review. The dividend is payable to shareholders registered in the company books by 11 February 2021.

In relation to the above the shares of the company will be traded cum-dividend (with dividend) on the Zimbabwe Stock Exchange up to the market day on 19 January 2021 and ex-dividend as from 20 January 2021.

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