Mishma Chakanyuka, Staff Writer 
PIPING products manufacturer Proplastics says owing to efficiencies realised from plant modernisation efforts, gross profit margins for the nine months ended September 30, 2022 improved compared to the prior year.
In a trading update, chairman Gregory Sebborn said profitability, which was hampered by exchange losses resulting from overdue payments to foreign creditors in the first half, has shown an improvement.
“A total of US$2,7 million was spent on capital equipment in the nine months of trading. The newly-commissioned PVC line has already contributed 12 percent to the total production volumes since April, while the new injection moulding machines and moulds resulted in a 10 percent increase in total volume for the period,” Sebborn said.
Sebborn added that with the enhanced factory capacity, the business will be able to convert all anticipated orders.
The group, however, expects demand to remain flat to year end given the onset of the rainy season.
Due to the depressed disposable incomes experienced during the period, the group’s sales volumes contracted by 10 percent compared to the prior year period.
Exports revenue declined by 30 percent compared to the same period in 2021 owing to currency volatility during the period.
Sebborn highlighted that the group will continue to review its reporting currency, costing model, value chain management, borrowings and working capital positions as part of balance sheet preservation.
“With all the complexities in the trading environment, the business remains alive to the challenges and continues to implement various initiatives focused on improving revenue and profitability,” he said.
Meanwhile, Sebborn said power supply is anticipated to improve as Proplastics has embarked on the replacement of the underground armoured cable that is fraught with faults, with a semi dedicated overhead powerline.
