• Willdale sales volumes declined 49%, with extrusion down 28% and fired production falling 52% due to working capital constraints
• Revenue dropped 36% year-on-year, despite a 28% increase in average selling prices reflecting a targeted sales mix
• Recovery is expected in Q2 as stock levels improve, liquidity pressures ease, and stand sales at Haydon Industrial Park support capital raising

Harare - Willdale Limited, Zimbabwe’s sole publicly listed brick manufacturer has recorded a steep decline in volumes for the quarter ended 31 December 2025, as working capital shortages constrained production despite firm underlying demand in the construction sector .

In its latest trading update, the company reported that extrusion volumes fell 28% year-on-year, while fired production dropped 52%, culminating in a 49% decline in sales volumes compared to the prior year .

The contraction was not attributed to weak demand, but rather to limited stock availability stemming from liquidity constraints that restricted access to working capital and funding for capital expenditure.

''Limited working capital negatively affected production , with extrusion down 28% and  fired production down 52% compared to the prior year,'' the company said.

The update situates the performance within a relatively stable macroeconomic environment, characterised by minimal inflation and exchange rate volatility. However, liquidity conditions remained tight, limiting the company’s ability to operate at full capacity.

Production remained below potential even as competition intensified, with more brick manufacturers entering the market .

As a result, revenue declined 36% year-on-year, largely reflecting reduced volumes.

Average selling prices rose 28%, indicating a deliberate sales mix strategy and pricing discipline in a constrained supply environment . The price increase, however, was insufficient to offset the magnitude of the volume decline.

From an operational standpoint, the numbers reveal a business grappling less with demand erosion and more with balance sheet pressure. Limited working capital impaired the ability to maintain adequate stock levels, effectively capping sales. This dynamic is particularly significant in a sector where construction cycles and project timelines require consistent supply reliability.

To mitigate liquidity strain, Willdale has accelerated stand sales at its Haydon Industrial Park, with Phase 1 servicing reportedly progressing well and strong market interest recorded.

The stand sales, initiated in December, have already supported critical plant maintenance and working capital needs . The company expects to raise sufficient funds through these disposals to acquire a modern all-weather brick-making plant before year-end, aligning with its longer-term growth strategy.

Looking ahead, the company anticipates improved stock levels and easing working capital pressures in the second quarter, which should support a rebound in revenue and profitability as production recovers .

The broader construction outlook remains positive, underpinned by infrastructure projects and urban development initiatives.

The quarter’s performance highlights a familiar tension within Zimbabwe’s manufacturing sector: macroeconomic stabilisation alone does not automatically translate into operational strength. While inflation and exchange rate volatility have moderated, access to affordable liquidity remains a decisive constraint.

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