Listed struggling timber producer and processor, Border Timbers revenue for the nine months to March 2022 grew 5 percent in inflation adjusted terms to ZW$ 1.822 billion owing to consistent supply and improved selling prices, the group has said.
The company went under restructuring in 2016 over viability challenges but exited judicial management early this year after a successful turnaround.
In its latest trading update for the nine months, the company said, “This positive performance was driven by consistent quality of our Kiln Dried Timber which resulted in better average selling prices and improved customer demand.”
Lumber sales volume was however 7 percent down compared to the comparative period in the prior year which company attributed to a reduction in sales volume mainly driven by low production volume as a result of power outages as well as the extended rainy season that affected harvesting operations.
“The demand for Lumber remains high both in the local and export market,” said the company.
Treated poles sales volume was 17 percent higher than the same period in the previous year, which was as a result of marketing initiatives which has seen an increase in the market share within the region.
The Company’s major risk remains the loss of forestry to fire and it continues to strengthen its fire patrol teams as well as upgrading the firefighting equipment.
“The focus going forward is on intensifying our replanting activities, capitalizing on the rains, and advancing the winter planting plan.”
On the financial position, the company posted an inflation adjusted loss of ZW$ 1.3 billion from a profit position of ZW$ 116.6 million comparative period.
The Inflation adjusted loss is mainly as a result of differential accounting treatment of Biological Asset gain by International Accounting Standards 29-Financial Reporting for Hyperinflationary Economies which uses the Balance Sheet approach to account for biological gain as compared to Historical Accounting.
The differential accounting results in a biological loss of ZW$2.2bn under IAS 29 as compared to ZW$0.3bn biological gain under Historical Accounting.