- Revenue was ZWL 189.8M
- PAT up 108% on cost containment measures
- Demand for products expected to recover on positive economic outlook
Harare – National Tyre Services (NTS) Limited operations remained subdued during the half-year ended 30 September 2020 as the biting impact of the COVID-19 on business operations stuck despite the restrictions easing over the closing months of the review period.
The ZSE-listed tyre retailer said retreading operations were negatively affected by lockdown closures as “our largest customers, the fleet operators, struggled to return to normal business during the period under review.”
Revenue for the period declined by 21% to ZWL 189.8 million compared to ZWL 238.8 million same period last year in inflation-adjusted terms.
Improved profit margins were realised on all product and service lines as cost-containment measures resulted in an after-tax profit of ZWL 35.3million in inflation-adjusted terms, up 108% from ZWL 17.0 million recorded in the previous year.
Other income, made up largely of rental income and foreign currency exchange gain, at ZWL 14.2 million was 3,249% above the previous period spurred by the foreign exchange gain realised compared to an exchange loss in the previous period.
Commenting on the outlook, NTS Chairperson James Moyo said, “The outlook remains challenging although we are encouraged by the momentum from the relative stability in the operating environment, which I mentioned under economic overview above. We expect inflation to gradually decline and the stability in prices witnessed in the past six months to maintain for the remainder of the trading period.
“The agricultural season has also started positively and bodes well for the nation in general. This and the projected positive growth in the economy in 2021 is expected to increase the demand for our products,” he said.
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