Rubber and industrial belts maker, General Beltings posted a total turnover at ZW$ 575 million in inflation adjusted terms, for the full year ended December 2021, an increase of 7 percent when compared with prior year’s ZW$ 537 million attributable to the increased volumes.
Overall volumes increased by 113 percent at 1488 metric tonnes when compared with prior year’s 699 metric tonnes.
In its end of year financial results, the company said it benefited from its technical partnerships as the flow of materials was sustained despite the violent disruptions in South Africa and the logistical delays further afield in countries of raw materials origin.
“Following concerted effort to penetrate and consolidate in new markets, the Chemical division shored up volumes in the last quarter which contributed significantly to the increase. The Rubber division benefited from a consistent order book throughout the year,” the company said.
However, this was against unrelenting inflation and the strengthening of the Rand against the United States Dollar which contributed in the increased production costs and put pressure on gross margins.
As a result, gross profit at ZW$ 246 million dropped by 11 percent from the prior year’s ZW$ 278 million.
Similarly operating costs of ZW$203 million increased by 35 percent from the prior year’s ZW$ 150 million due the costs that tracked the parallel exchange rates. As net operating profit of ZW$ 44 million was recorded against the prior year’s ZW$140 million.
The Board considered the need for additional working capital requirements and resolved not to declare a dividend.
“In response to the challenges, the Company consolidated its position in market niches carved out in the prior year while focusing on delivering a commensurate value proposition to its customers through stronger stakeholder relationships in a more intensified competitive market,” said the company.
Going forward the company said it expects to benefit from increased mining activity and customer penetration at a time of firming global commodity prices.
