Proplastics reports strong third quarter earnings

Harare, (New Ziana) – Plastic pipes and fittings manufacturer, Proplastics has reported a rise in quarterly demand for its products and put in place robust contingency plans to ensure the availability of key raw materials in order to meet the demand.

Chairman Gregory Sebborn said the global impact of the coronavirus has significantly affected the group’s domestic and regional markets, resulting in significant interruptions in the entire supply and value chains.

“The global shortage in the supply of PVC feedstock, a derivative of crude oil, due to closing of facilities as a result of the Covid-19 pandemic, has resulted in shortages and price increase of both the raw materials and finished goods.

“The imbalance in supply and demand is likely to spill over into Q1 of 2021. The supply of water and electricity remained stable during the period under review,” he said.

While demand for the group’s products improved significantly, Sebborn said, considerable pressure was experienced on the raw material and product supply side in order for the business to meet increased demand in Q3. As a result, sales tonnage for Q3 grew by 64 percent compared to same period last year.

“In turn, year to date volumes responded positively from a reduction of 18 percent in HY2020 to 10 percent above similar period last year at the close of the third quarter. Segmental contributions from irrigation, mining, merchants, civils, and borehole drillers registered positive growth in the third quarter,” he said.

Exports rose 75 percent and contributed seven percent to total revenue in the period under review from four percent previously.
New Ziana