Mishma Chakanyuka, Staff Writer 
NATIONAL Tyre Services (NTS) says it is expecting an increased demand for tyres, related products and services in the build-up to general elections.
Zimbabwe’s general elections are scheduled to be held on August 23, 2023 to elect the President and members of both houses of Parliament, as well as local authority representatives.
“We are projecting increased demand for tyres and related product and services in the build-up to general elections and the upcoming agricultural season,” the company said in a statement accompanying its financials.
During the full year ended March 31, 2023, NTS said premium sales in units increased by 14 percent over the prior year, as a result of the availability of Dunlop tyres which was instrumental in retaining the company’s large corporate customer base.
“NTS remains viable as the competitive space continues to be crowded by new entrants across the country,” the company said.
The company’s budget brands segment was however, impacted by the restricted access to foreign currency, which in turn affected product availability.
Retreading performance declined during the year, as the company managed to maintain presence in key retreading fleets.
“NTS’s capability and capacity for excellent products and service in retreading continues to be preferred by the market.
Management continued to review business operations throughout the year to enhance overall performance and strengthen NTS’ competitive advantage. NTS also widened the range of suppliers and revamped supply chain management to effectively manage costs and position the business appropriately for the future,” the company said.
The company’s sales revenue for the year grew by 21 percent to $4,332 billion from $3,579 billion last year due to the continued implementation of the turnaround strategy. Gross profit decreased by eight percent to $2,462 billion from $2,686 billion in 2022, as the cost of sales increased due to higher costs of imported products.
NTS incurred a loss of $427 million from a profit of $1,187 billion in the previous year. Meanwhile, NTS is cautiously optimistic about continued stability in exchange rates which will aid planning and business growth.
“The monetary measures being implemented by the government to stabilise the local currency are bearing fruit given that the local currency is firming against the US$. Foreign currency exchange rates are stabilising on parallel and auction markets,” the company said.
“Industry is expecting that the current stability in power generation will continue to minimize production disruptions.” NTS said, to capitalise on the obtaining environment, the company will continue to focus on cost containment and enhanced market outreach programs to increase the inventory turnover ratio and improve profitability.
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