Border Timbers pins hopes on economic stability, reports volumes growth

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In the latest update for the quarter ended September 2021, Border Timbers recorded a volumes growth in poles and lumber sales.

Transmission poles registered a volumes growth of 95%. The company said the volumes growth was driven by new marketing initiatives which have seen market growth within the region as well as the fading away of the adverse impacts of COVID-19 which has a significant effect on the pole business.

COVID-19 has played an adverse role in supply chains, disrupting the flow of business the whole of 2020. The easing of lockdowns restrictions saw business activity improve into 2021, a positive for the business environment at large.

Lumber volumes slightly rose by 0,34% posting 11,578 in sales. Lumber production is broadly in line with the prior year and demand for Lumber remains very high both in the local market and the export market, Border Timbers said.

Revenue likewise registered a 48% growth in inflation-adjusted terms to ZW$462.011 million.

For Border Timbers, the trading environment remains relatively stable. It added that pricing volatility has also improved as the interbank exchange rate continue to increase though compared to the parallel exchange rate, the gap is still wide and remains hopeful that the Central Bank will continue with their initiatives to achieve stability in the prevailing exchange rate and eliminate arbitrage caused by the disparity between the official rate and the parallel rate, which largely underpins the country’s economic stability and provides the required impetus for economic growth.

What the future holds for Border Timbers

The Company said that it will continue to focus on strengthening its balance sheet and profitability by improving its biological asset and the related value chains. The key focus is also on recapitalising the company’s sawmills so that they are equipped with modern machinery which results in high efficiency and profitability.

About Border Timbers

Border Timbers is a forestry and sawmilling company in Zimbabwe. The company operates five forest estates and three sawmills. Principal products include pine and eucalyptus. Border’s stock is listed on the Zimbabwe Stock Exchange.

At Stake

The company which is also under judicial management might risk liquidation if major steps and investment plans are not taken to increase its capital reserves.

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