Listed building material manufacturer Turnall Holdings strategy to change its sales mix which favored high value and low tonnage products paid off after the firm recorded a profit growth despite lower volumes.
In its six months financial results to June, revenue was 38 percent ahead of prior year in inflation adjusted terms at ZW$2.6 billion although sales volumes declined by 29 percent compared to the same period last year due to a change in the sales mix which favored high value and low tonnage products.
However, sales were also negatively affected by liquidity constraints and subdued aggregate demand with all sales earned in USD being recorded at the auction rate from January 2022 to April 2022 and the interbank rate thereafter.
Production volumes dropped by 21 percent compared to the previous year which the company said, “was a deliberate move by management in order to align production to the sales demand.”
The gross profit margin for the year in inflation adjusted terms was 51 percent against the same period last year of 24 percent.
“The improved gross profit margin is attributed to improved production efficiencies, cost containment strategies and a change in the sales mix.”
The gross profit margin for the year was 51 percent ahead of previous year attributed to improved production efficiencies, cost containment strategies and a change in the sales mix.
The Group continues to implement cost control measures to improve the viability of the business.
