Willdale sees brick demand fall 15% in quarter ending Dec 2019
Harare, (New Ziana) – Zimbabwe Stock Exchange listed brick making firm Willdale Limited said on Thursday sales slumped 15 percent in the quarter ending December 2019 compared to the same quarter in 2018 as construction slowed down in the rainy season.
In a trading update, company secretary Mavuto Munginga said revenue on an inflation adjusted basis was however eight percent above the same period last year.
“Sales were 15 percent lower than the same period last year (2018) as a result of declining effective demand,” Munginga said.
A subdued mortgage market had also not done the construction sector any favours.
The firm is expecting “better sales” after the rains when construction projects are expected to resume.
Munginga said the brick maker was targeting government projects and cluster housing schemes to boost sales.
“Opportunities are being exploited in the reconstruction of the cyclone ravaged Chimanimani region and other ongoing housing development projects,” he said.
“Profitability is expected to continue into the ensuring quarter.”
Demands for higher wages, power costs as well as maintenance costs are expected to put pressure on margins in the ensuing period, he said.