Mishma Chakanyuka, Staff Writer 
BRICKMAKER Willdale says exchange losses amounted to 21 percent of its revenue during the year ended September 30, 2023, as its income continues to be impacted by distortions in exchange rates.
Zimbabwe has continued to experience exchange rate distortions despite the fiscal and monetary authorities implementing measures to stabilise it.
“Exchange losses amounted to 21 percent of revenue (2022:2 percent) reflecting the extent of exchange rate movements on foreign currency denominated balances,” the group said in its financials.
During the year under review, Willdale’s revenue improved by 106 percent to $37 billion compared to $18 billion recorded in the prior period.
The group’s operating loss of $6,9 billion was 19 percent of revenue.
Willdale said lower availability of stock as a result of electricity shortages during the year contributed to a five percent decline in the group’s sales volumes.
The brickmaker said despite the decline, margins were sustained by a favourable product mix, which kept average prices at acceptable levels.
“Throughput and efficiencies were affected by intermittent power outages that prevailed throughout the financial year.
“Clay crushing capacity was enhanced during the year by investing in a new plant, resulting in better product quality.
“Capacity utilisation averaged 75 percent despite electricity supply deficits,” Willdale said.
The group highlighted that it is exploring various options to enhance plant capacity in the short-term and intends to leverage its existing assets to source appropriate funding.
“A programme is under implementation to ensure consistent brick supplies during the rainy season to satisfy growing demand,” the group said.
The group said investment property, land and buildings were revalued at the end of the financial year to reflect fair values in line with accounting policy.
Despite the operational and economic challenges, positive net cash flows amounting to $3,6 billion were generated from operations.
On the outlook, Willdale said key economic fundamentals have remained stable post-year-end, laying a good foundation for a better operating environment in the ensuing year.
The group said electricity supply must improve to boost capacity utilisation and efficiencies and put more bricks onto the market.
“We will leverage on the prevailing boom in the construction of houses, commercial buildings, educational facilities and other infrastructure to improve revenues and profitability in the ensuing year,” Willdale said. newsdesk@fingaz.co.zw
