HomeNewsTurnall’s first quarter revenue slump

Turnall’s first quarter revenue slump

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ZIMBABWE Stock Exchange-listed manufacturing concern Turnall Holdings’ revenue for the first four months to April was down 10% to $11,3 million compared to the prior comparative period due to subdued business, the company has announced.

Report by Tarisai Mandizha

Speaking at the company annual general meeting yesterday, Turnall managing director John Jere yesterday said the commissioning of a $2,5 million art roofing tile making plant expected to boost output as well as grow exports was nearing completion.

The machine has the capacity to produce between 45 000 and 50 000 tiles per day.

“It is, however, important to highlight that Q1 performance is normally subdued given the seasonal nature of our business cycle. Overall performance in April and May has given us the confidence that these negative trends will be reversed in the coming months,” Jere said.

“We do recognise the many challenges ahead, but remain confident that our performance at the end of this year will be 15% ahead of 2012 especially when we factor in export and local piping business performance.”

Jere said the new plant would augment existing Turnall’s product range, which includes housing tiles and construction pipes.

Turnall’s gross profit margins during the period under review stood at 20%, missing the 29% target due to low capacity utilisation, Jere said.

According to the Confederation of Zimbabwe Industries manufacturing sector survey, capacity utilisation in the manufacturing sector last year plunged to 44% from 57% recorded in the prior year due to a host of factors including undercapitalisation.

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