NTS optimistic of continued stability

NATIONAL Tyre Services Limited (NTS) says it is cautiously optimistic about the continued stability of the exchange rate, which will aid planning and business growth.
Zimbabwe has been experiencing continued stability in the exchange rate after the successful implementation of a raft of measures by fiscal authorities to tame inflation and stabilise the exchange rate.
On the official market, the exchange rate has been hovering around $4 500 to $4 800 for US$1, while on the parallel market, the rate has remained between $6 000 and $7 000 for US$1.
“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 dollar. Foreign currency exchange rates are stabilising on parallel and auction markets,” the company said.
NTS said, to capitalise on the obtaining environment, the company will continue to focus on cost containment and enhanced market outreach programmes to increase the inventory turnover ratio and improve profitability. During the full year ended March 31, 2023, 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 a 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’s 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.
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