General Beltings Limited recorded growth in volumes in the third quarter ended 30 September 2023.
The company lamented reduced demand for its products during the quarter due to liquidity constraints.
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Book NowHowever, the interventions by the government through the Ministry of Finance and Economic Development and the Reserve Bank of Zimbabwe (RBZ) yielded positive results enabling the company to access foreign currency.
The decision to refurbish its boiler and ancillary equipment changed the fortunes of the company as it enhanced internal process efficiencies thereby retaining its competitiveness in the key markets.
General Beltings cleared its back orders in the quarter following the commissioning of the refurbished additional press while Cernol Chemicals recovery of its traditional markets was ongoing post the Covid 19 shut down.
Total volumes for the third quarter at 308 metric tonnes were 57 % higher than the 196 metric tonnes recorded in the same period prior year.
The rubber division volumes at 92 metric tonnes were 19 % higher than the 77 metric tonnes recorded in the same period last year.
The Chemicals Division volumes at 216 metric tonnes were 82 % higher than the same period prior year’s 119 metric tonnes due to the market recovery efforts in the quarter.
The total turnover for the quarter at USD 1.2 million was in line with the same period last year at USD 1.1 million, despite the increased competitions from imports from the region and abroad.
The company operated profitably in the quarter despite the mixed fortunes of the divisions.
Looking forward, General Beltings is bullish and expects the fortunes of the rubber division to be on the recovery path subject to positive changes in global metal prices.
Cernol Chemicals is expected to continue on its recovery path post-Covid-19 as the hospitality sector register more room occupancy levels.
The rubber division’s enhanced production capacity will assist in shorter order conversion period and is poised to cope with a rebound in the market.
