Farai Mabeza, Senior Staff Writer 
In its inflation-adjusted financial statements for the year ended December 31, 2022, company chairman Godfrey Nhemachena said total turnover increased to $3 billion, representing a 53 percent rise from the prior year’s $2 billion. He attributed this to increased market consolidation and product mix.
“Overall volumes at 944 metric tonnes declined from the 1488 metric tonnes recorded in the prior year, which included 514 metric tonnes of Covid-19 related business. The company’s improved process efficiencies and strong technical partnerships cushioned it against the logistical constraints,” Nhemachena said.
He added that aggregate demand during the period under review also declined as disposable incomes were decimated due to the increased dollarisation in the economy while at the same time punitive interest rates of plus 200 percent discouraged borrowings.“Nevertheless, the company continued on its growth path in pursuit of its strategy of delivering a commensurate value proposition to its customers through consistent product quality, competitive pricing and timeous delivery of products.
“The rubber division consolidated its market positioning while the chemicals division focused on market recovery post the Covid-19 pandemic while at the same time establishing new market niches,” Nhemachena said.
“Overall, the company expects to deliver an improved performance in 2023 although the supply of power for industrial purposes remains a significant operational risk that threatens the growth momentum thus far.”
Gross profit for the year increased by 96 percent to $1,6 billion compared with the prior period’s $846 million and this was attributed to improved overhead recoveries.
“The company posted an operating profit increase of 274 percent to $564 million from the $151 million recorded in the prior year,” Nhemachena said.
“The order book firmed up as consumers opted for a local producer as a mitigant against their own supply risk. Despite stiff competition from imports, the company held its own in terms of price, product quality and turnaround times.”
The rubber division volumes increased by 22 percent to 379 metric tonnes from 301 metric tonnes driven by growth in the mining sector. The division was buoyed by a consistent order book and improved throughput despite intermittent shortages of raw material in two months of the year.
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