Brick-maker, Willdale Limited sustained an 81 percent sales volume growth during the first quarter to December 2020.
The growth was sustained by high demand for bricks due to increasing housing development and infrastructure projects in the country.
During the period under review, the local currency remained stable following improvements in the exchange rate market.
Willdale’s revenue for the quarter was 80 percent above the same period in the prior year in hyperinflation terms.
“Housing development projects continued to provide the bulk of sales, supported by significant contribution from infrastructure projects,” said Willdale secretary, Mavuto Munginga.
The quarter was characterized by the relaxation of stringent lockdown regulations and also a relative stability to the exchange rate, yielding improved business as inflation slowed down.
Annual inflation declined from 659.4 percent for September 2020 to 348.6 percent for December 2020.
Government also complimented infrastructure development projects in the market after it channeled ZWL$ 24.7 billion into the sector in 2020.
“The exchange rate was relatively stable giving impetus to improved trading conditions. Demand for bricks remained high,” said Munginga.
Production was however temporarily halted in December when the company embarked on seasonal production shutdown and plant maintenance with production expected to resume this month.
However, the supply gap in housing delivery remains huge providing a healthy order book for the second quarter.
“The business remains solvent. Operations are going on as usual. Working capital is in place to support the business in the short term. Cash flows continue to be generated from available stocks sales,” said Munginga.
The company was granted authority to operate following the announcement on 2 January 2021 of the latest Covid19 induced lockdown.