- The new crashing plant is expected to be commissioned in 2023
- PAT soared to ZWL4 billion in FY’2022
- Production slipped by 3%
The graph below shows the Group’s assets vs liabilities over 4 years in ZWL billions
Harare- Brick maker, Willdale Zimbabwe Limited is set to install a new crashing plant this year to improve productivity while further investments on capital expenditure are in the pipeline to improve productivity and efficiency of both fixed and mobile plants.
The development comes after the Group’s production in green output dropped by 3% during the full year ended 30 September 2022, a drawback effect the Group said was caused by the late rains that were received in April 2022.
As production declined, sales volumes for the period also declined by 9% despite the Group’s after-tax profit soaring to ZWL4 billion from ZWL676 million in FY’2021.
“Although the volumes declined by 9% compared to prior year, the product mix was favourable and contributed favourably to the average price, “the Group’s chairperson, Cleopas Makoni said in a statement accompanying the financials.
As a result, revenue for the period marginally shoot by 9% to ZWL5.1 billion from ZWL4.7 billion while interest income grew to ZWL5 million from ZWL782 000 in 2021.
“The revenue figures were affected by exchange rate distortions while other income was largely comprised of exchange loss.”
“The late rains that were received in late April and regular power shortages affected production resulting in 3% decline in green output, ”Makoni added.
However, fired production marginally rose by 4% due to increased throughput from structured kilns.
The Group maintained a cost-cutting strategy as costs and expenses continued to decelerate since 2020 during the COVID-19 pandemic. Cost of sales decreased from 58% between 2020 and 2021 to 37% between 2021 and 2022 while administrative expenses, despite operating in an inflationary environment increased marginally by 13%, from 34% between 2020 and 2021 to 48% between 2021 and 2022.
Cash generated during the year more than tripled by increasing with 188% to ZWL229.9 million from ZWL79 million in 2021. A major driver was the interest received which soared to ZWL5 million from ZWL781 000 in the comparative period.
However, cash and cash equivalents at the end of the year narrowed by 13% to ZWL135 million from ZWL155 million at the beginning of the year.
Resultantly, current assets marginally exceeded current liabilities at ZWL2 billion and ZWL1.6 billion in their respective orders. Compared to prior year, current assets grew to ZWL2.7 billion from ZWL2.2 billion which was a 23% increase while current liabilities registered a mild growth of 33% to ZWL1.6 billion from ZWL1.2 billion in 2021.
Going forward, the Group expects to improve productivity with the new crushing plant set to be installed this year given the provision of electricity and foreign currency is sustained.
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