Almot Maqolo, Staff Writer 
WILLDALE spent eight times more on local procurement in 2023 than it did the previous year as the brick-making company sought to minimise lead time and stock holding costs associated with sourcing raw-materials externally.
The company, the only brick maker with a publicly-traded stock, spent $17,71 billion in 2023 on local suppliers, reflecting an 832 percent rise from $1,9 billion in 2022.
“Willdale Limited developed an effective and robust costing system to manage cost to budget levels in terms of spending,” the company said in its annual report for the 12 months ended 30 September 2023.
The company however saw its import bill reach $157,56 million in 2023 from $15,53 million in 2022.
One of the most important aspects of the company’s operations is managing the social and environmental implications related to its service providers.
“To optimise efficiency, we prioritise minimising lead time and stock holding costs.
“However, we have learned from past experiences that engaging with unregistered suppliers can be risky as it may cause damage to our brand reputation and lead to delays in supply.
“To minimise these risks, we now prioritise sourcing from vetted enterprises. Further, we have implemented a rigorous checklist to ensure strict compliance with our requirements when registering new suppliers,” the company said.
The company however saw its import bill reach $157,56 million in 2023 from $15,53 million in 2022.
The list of suppliers rose 39,77 percent to 861 in 2023 from 616 in 2022.
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 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.
The Zimbabwean market has continued to experience exchange rate distortions despite concerted efforts by its fiscal and monetary authorities to stabilise it.
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.
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