Turnall Holdings reported a robust 24% increase in sales volumes for the third quarter ended 30 September 2026, reaching 11,354 tonnes compared to 9,150 tonnes in the corresponding period of 2025. On a year-to-date basis, sales volumes grew by 29% to 28,161 tonnes from 21,824 tonnes in the comparative period last year, driven by improved demand for the Group’s products and ongoing marketing initiatives.
Despite this growth, profitability remained under pressure, with gross profit for the third quarter declining to 15% from 28% in the prior year. The contraction in gross margins was primarily attributable to higher production costs, changes in sales mix, and competitive pricing pressures.
However, operating expenses reflected the benefits of ongoing cost containment initiatives, with the expense-to-sales ratio improving to 19% in the third quarter from 26% in the comparative period last year. The Group’s strategic initiatives, including plant optimisation, energy security, and product diversification, are expected to drive future growth and restore sustainable profitability.
The company says it remains focused on increasing capacity utilisation, enhancing production efficiencies, margin recovery, and disciplined cost management to ensure sustainable shareholder value creation.
Turnall Holdings is pushing ahead with several key strategic initiatives aimed at driving growth and restoring profitability. These include optimising the new Harare fibre-cement plant, implementing a solar power project to mitigate electricity disruptions, upgrading the Bulawayo sheeting plant to produce roofing sheets using synthetic fibres, and broadening its building materials portfolio through product diversification.
The outlook remains positive, with 29% year-to-date sales volume growth and continued generation of positive operating cash flows. However, declining gross margins and higher financing charges require urgent attention. The company is focused on restoring sustainable profitability through increased capacity utilisation, enhanced production efficiencies, and disciplined cost management.
Substantial investment in marketing will drive sales across all product lines, and the company believes these initiatives will ensure sustainable shareholder value creation.
