Mishma Chakanyuka, Staff Writer 
NATIONAL Tyre Services Limited (NTS) says it will leverage on the rolling extensive road rehabilitation program aimed at improving infrastructure and enhancing road safety, potentially leading to increased vehicle traffic and demand for tyre services.
In 2022, the government declared the dilapidated roads a national disaster. Under the Emergency Road Rehabilitation Programme 2, it set aside at least ZW$33,6 billion to repair the roads, and a number of them in urban areas have since received a much-needed facelift.
NTS chairman, Rutenhuro Moyo
“As we look ahead, we envisage leveraging on the rolling extensive road rehabilitation program, which will improve infrastructure and enhance road safety, potentially leading to increased vehicle traffic and demand for our tyre services,” NTS chairman, Rutenhuro Moyo said in a statement accompanying its results for the year ended March 31, 2024.
“Already, the company has realized strong demand for Light truck and luxury motor vehicles tyres during the build up to the SADC summit.”
Moyo said the company intends to boost profitability and market share by offering a balanced product portfolio of meticulously engineered tyre brands.
“We are optimistic of a return to normal peak season in the second half of the year. Typically, hot and rainy seasons drive demand for tyres and related services,” he added.
During the year ended 31 March 2024, the company’s procurement of market-driven premium tyres resulted in a 24 percent growth in new tyre sales volumes when compared to the prior year.
Moyo noted that NTS’ solid and long-term trading relationship with its suppliers sustained business operations through seamless supply of stock.
“Although the company closed four retail outlets at the beginning of the Financial Year, National Tyre Services managed to maintain a strong presence in affected areas through personal selling,” he said.
NTS’ retreading sales volumes rose by 10 percent from April 2023 to March 2024 when compared to April 2022 to March 2023 as the company retained a large retreading customer base through improved turnaround time and unmatched workmanship.
The company’s sales for the year grew by 95 percent to ZW$259,669 billion from ZW$133,291 billion in 2023, while gross profit increased by 39 percent to ZW$105,314billion from ZW$75,752 billion in 2023.
Total operating expenses increased significantly during the year to ZW$114,067 billion from ZW$66,775 billion in the prior year.
The company incurred a loss before tax of ZW$39,276 billion from a loss of ZW$7,253 billion in the previous year.
Going forward, NTS is upbeat that the strategies being implemented by the authorities to boost demand for ZWG will stabilise inflationary pressures, and enhance market acceptance and confidence.
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