- Proplastics has swung back into profitability, posting a US$348,168 profit for the half year ended June 30, 2025, compared to a US$71,875 loss in the same period last year
- Revenue rose 12% to US$9.6 million, driven by a 14% increase in sales volumes across agriculture, mining, and infrastructure sectors
- Despite erratic electricity supply, liquidity constraints, and limited export contributions, the company remains optimistic about accelerating demand in the second half
Proplastics Limited has swung back into profitability, posting a profit of US$348,168 for the half year ended June 30, 2025, compared to a loss of US$71,875 in the same period last year, according to the latest financial results.
The turnaround was underpinned by firmer sales volumes, improved gross margins, and a relatively stable trading environment, despite persistent operational challenges.
Revenue rose 12% to US$9.6 million from US$8.6 million in the prior period, driven by a 14% increase in sales volumes, reflecting stronger demand for pipes, tanks, and fittings across agriculture, mining, and infrastructure segments.
‘’The revenue increase was driven by a 14% growth in sales volumes, reflecting an improvement in demand for our products,’’ said Gregory Sebborn company the chairperson.
This translated into a gross profit of US$3.2 million, up 30% from US$2.5 million last year, as cost containment and improved efficiencies offset some of the impact of surging energy expenses.
While the first half benefited from a relatively stable macroeconomic backdrop, including easing inflation and a stronger agricultural output, Proplastics grappled with erratic electricity supply.
Frequent load shedding and outages disrupted production schedules, forcing reliance on diesel generators, which pushed up conversion costs. The company’s solar plant cushioned some of the disruption but margins remained pressured.
The operating environment also presented structural challenges. Liquidity constraints in the domestic market weighed on demand and competitiveness, while an increase in foreign currency surrender requirements for exporters from 25% to 30% undermined export viability.
As a result6 export sales contributed only 3% of revenue.
Borrowings eased to US$1.58 million from US$2.12 million, reducing the gearing ratio to 11% from 14%, providing the group with headroom to leverage for working capital if needed.
Cash and cash equivalents closed at US$235,000, down from US$357,000 at the start of the period, largely due to debt repayments, dividend payouts, and share buybacks.
Looking ahead, the company remains optimistic, expecting demand for tanks, pipes, and fittings to pick up in the second half of the year as government-backed infrastructure projects roll out during the dry season.
However, this optimism is based on fictitious points, as several industry players are facing significant challenges. For instance, Masimba, has shifted focus to private contracts, citing delays in payments from government projects.
Similarly ,Bitumen World, one of Zimbabwe’s largest construction contractors, had to cut jobs due to severe cash flow pressures caused by delayed government payments
