Zimbabwe: Willdale returns to profitability on the back of volume increases and better cost management

Willdale returns to profitability on the back of volume increases and better cost management

Cost management initiatives undertaken during the year resulted in a 22 percent decline in average production costs. WILLDALE’s after tax profit for the year ended 30 September 2015 grew by 77% to $214 086 from a loss position of $931 011 in prior year and the group says it is now positioned to sustain profitability going forward.

Profitability was spurred by the injection of capital last year to the tune of $3 mln which resulted in high volumes and reduced unit costs.

In a statement accompanying the results, Chairman Alex Jongwe said prior year investment in refurbishing plant and acquisition of equipment resulted in improved capacity utilisation which is now at 70% from 60% the same period last year. Better efficiencies and cost management led to reduced cost of production.

“The plant is now poised to meet production in excess of 100 mln bricks per annum. We continue to explore various means to improve efficiencies and further reduce the unit cost of production without compromising on high quality standards required by our customers,” he said.

Jongwe said during the year, green and burnt production volumes grew 30% and 22% respectively from prior year levels.

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