- The quarter was constrained in terms of raw materials supplies due to liquidity shortages with reduced activity recorded in August
- Rubber division volumes dipped by 3 % on the back of delayed raw materials supplies in the middle of the quarter.
- Despite that, turnover grew by 9% to US$ 3,539 million from the prior year’s US$ 3,237 million.
Harare- ZSE-listed rubber and chemicals manufacturer, General Belting Holdings Zimbabwe Limited lamented the operating environment which continues to be tough, despite government reiterating about growth prospects.
In its Q3 trading update for the full-year to 2022, the Group said the Zimbabwe dollar scarcity and record interest rates hike at 200% s constrained operations due to high debtor default and inability to access additional local funding.
“The quarter was constrained in terms of raw materials supplies due to liquidity shortages with reduced activity recorded in August,” the Group said in a trading update.
“Notwithstanding the above, the monetary measures and stakeholder relationships assisted the company to model a sustainable raw materials supply structure for the short term whose benefit would be felt in the fourth quarter of 2022.”
Total volumes grew by 7% to 690 metric tonnes from 644 metric tonnes attributable to the market recovery efforts in the Chemical division whose volumes were 14 % up when compared with the same period prior year.
However, the rubber division volumes dipped by 3 % on the back of delayed raw materials supplies in the middle of the quarter.
Despite that, turnover grew by 9% to US$ 3,539 million from the prior year’s US$ 3,237 million.
Going ahead, the Group said, “A significant recovery is expected in the fourth quarter underpinned by a strong order book at the rubber division and consistent demand at the Chemicals Division.”
“Overally the company is expected to post a profit for the year and will remain a going concern.”
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