Turnall Holdings Limited recorded a 7% decline in volumes in the third quarter (Q3) of 2023 compared to prior period last year due to supply of raw material constraints.
The company released a Q3 trading update which showed a decline in volumes to 8,526 tonnes from 9,132 tonnes compared to the same period last year.
The decline was attributed to product shortages as a result of the war in Ukraine.
” Business performance was negatively affected by product outages of roofing sheets owing to delays in the supply of the key raw material, fibre, due mainly to the impact of the war in Ukraine,” read the trading update.
In order to mitigate losses and volumes decline the company secured alternative sources of fibre from Brazil to complement the existing fibre supplies. Expectations are that operations will normalise in the fourth quarter of 2023.
Trading activity was also negatively affected by the liquidity crunch, low disposable incomes and price distortions prevailing in the economy.
Building products, concrete products and AC Pipes contributed 53% and 46% and 1% of the sales volumes respectively.
The company benefited from the multi-currency regime as they were able to pay for their foreign currency obligations.
The company is retooling after acquiring a new state-of-the-art fibre cement sheeting plant and a Glass Reinforced Plastic (GRP) Plant. These new plants were funded using proceeds from a Rights issue.
