• New tyre volumes increased by 162%

  • A boom in grain harvest scaled up demand for tyres

  • Tube volumes scaled up by 160%

Harare - Despite the restrictions posed on inter-city and cross border bus movement which is a key market segment for tyre business, as the government tried to contain the spread of coronavirus (COVID-19) pandemic, the Zimbabwe Stock Exchange-listed tyre reprocessing and retailing counter, National Tyre Services (NTS) has reported a 163% overall volumes growth in its first quarter(Q1) trading update ended 31 June 2022 owing to robust survival strategies employed by the company under the COVID-19 operating environment.

The growth is from the 2020 comparative period.

During the period under review, new tyre volumes increased by 162% to 11,952 from 4,550 produced during the same quarter last year owing to stock availability and focused marketing initiatives.

Retreading volumes surged by 75% to 3 267 during the period under review compared to 1 869 for the prior year propelled by increased demand from retreading customers.

“Trucking operations improved during the period under review when compared to the same period last year as Government imposed less restrictive measures to allow trucks to operate during the Covid-19 hit trading environment,” the Company said in a statement accompanying the trading update.

Meanwhile, tube volumes scaled up by 160% during the quarter compared to the prior period last year due to the high demand for tubes from the agricultural sector.

The company said the boom grain harvest experienced during this year spurred the demand for tyres.

Services category volumes increased from 7 132 to 22 527 while repaired were 2 526 up from 1 446 during the previous year.

As a going concern, the Company said effective containment of the COVID-19 pandemic will provide a conducive operating environment that will promote volume growth.

National Tyre Services Limited is engaged in reprocessing and the retailing of tires and its products include Dunlop, Firestone, Bridgestone, Yokohama, Pirelli, Bandag, Regal and Comforser.

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