National Tyre Services posts 99% volumes increase in Q3 2020

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  • Volume of new tyres sold increased by 213%
  • Good rainfall resulted in high demand for Agricultural related tyres
  • YTD volumes have increased by 28%

HARARE – Despite COVID-19 related challenges that resulted in the closure of borders, National Tyre Services (NTS) on Friday reported impressive volumes performance for the third quarter ended 31 December 2020 (Q3 FY2020).

Overall, volumes for the period increased by 99% compared to the same period last year, attributed mainly to effective marketing initiatives and availability of stock.

The volume of new tyres sold increased by 213% compared to the same period last year as the Company continues to implement robust marketing strategies to promote sales complemented by good stock availability.

The period under review had its own challenges. In addition to COVID-19 constraints, the movement of stock into Zimbabwe was further curtailed by cyclones that delayed the berthing of ships at Beira with stocks from China and India. Locally, critical demand for forex to import essential requirements including COVID-19 kits, vaccines, and raw materials also weighed in.

The Company’s volume performance improved despite these challenges,” Company secretary Stewart Mandimika said in a statement accompanying the trading update.

“Good rainfall resulted in high demand for Agricultural related tyres.”

The Company’s retreading volumes for the period increased by 21% compared to the same period last year due to focused key account management efforts to retain strategic fleet customers.

Services category volumes increased by 87% compared to Q3 2019-2020 driven by good service delivery to customers.

“Overall, 2020/2021 YTD 31 December 2020 volumes have increased by 28% compared to the same period last year mainly due to stock availability and marketing effort to push sales,” said Mr. Mandimika.

Going forward, he said that key areas to watch, to ensure the continued viability of the business, will be cost control, an uninterrupted supply chain, and avoidance of loss of capital against inflationary pressures.

“It is hoped that the foreign currency auction platform will grow further to cater for the industry’s needs,” he added.

Listed on the Zimbabwe Stock Exchange, NTS is the largest distributor and retailer of new tyres and tubes for the automotive industry in Zimbabwe. Its focus is on re-lugging tyres used in the agricultural and earthmoving sector and the procurement of truck tyres for the Zimbabwe transport industry. Popular tyre brands sold by National Tyre Services include Dunlop, Firestone, Bridgestone, Yokohama, Pirelli, Bandag, Regal and Comforser.

The company has a national footprint with 12 retail outlets in major towns and cities in Zimbabwe. The re-lugging factory is in Harare and Chiredzi and re-treading and procurement of truck tyres is done out of Harare and Bulawayo.

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