ProPlastics enjoys Q1 surge in sales

Harare, (New Ziana) – Pro-Plastics recorded a 93 percent surge in sales in the first quarter of 2021 compared to the same period last year due to huge demand for its products despite the hard Covid-19 lockdown during the period.

The Zimbabwe Stock Exchange listed firm is a manufacturer of plastic pipes and fittings used for, among others things, irrigation, mining, civil works, borehole casings and cable ducting.

Zimbabwe opened the year with a lockdown as it experienced a second wave of Covid-19 infections.

Pro-Plastics chairman, Greg Sebborn said demand for the company’s products was strong despite the lockdown.

“Sales tonnage for the quarter grew 93 percent compared to the first quarter prior year. The strong performance was across all the segments of the business, namely irrigation, mining, merchants, civils and borehole drilling,” he said.

Exports were up 71 percent compared to prior period, increasing their contribution to group revenue to seven percent from two percent.

“As a result of the strong sales volume performance, sales revenues responded positively and are 29 percent above budget and 187 percent ahead of prior year,” he said.

Sebborn said the solid performance had set the stage for an improved half-year performance.

“With robust contingency plans put in place to ensure constant supply of raw materials and the lockdown subsequently lifted at the end of February, it is expected that demand for the group’s products will
firm even further,” he said.

He said the firm’s new factory was now fully operational, increasing production capacity and efficiencies.

“The business is, therefore, geared to meet the rising demand,” Sebborn said.

Foreign currency availability, he said, would remain key to ensure sustained production.
New Ziana