Border Timbers (Zimbabwe) revenue down 13% to ZWL1.48 billion in FY2021

By Published On: November 1st, 2021Categories: Corporate announcement, Earnings

Economic Environment

The economic conditions during the financial year under review were slowed down by partially relaxed COVID-19 induced restrictions to gatherings, travel, and business trading hours. The regional countries relaxed the lockdowns in response to the subsiding second wave COVID-19 infections rates, which had a positive impact on the export business. The reassuring recovery in the Zimbabwe economy, mainly attributable to rescinding inflation and a relatively stable exchange rate, created a better trading environment which is expected to continue as the government continue to implement economic reforms.

Year to Date Performance

Lumber production is lower compared to prior year due to disruptions in production and logistical bottlenecks that were caused by COVID-19 pandemic. Demand for Lumber remains very high both in the local market and the export market. Treated poles reflect a decline in production and sales volume compared to prior year, this was because of lower demand since the advent of Covid-19.

The results were inflation adjusted to reflect the impact of the change in the general purchasing power of the reporting currency (ZWL) in accordance with IAS 29, Financial Reporting in Hyper-inflationary Economies. Revenue for the year declined 13% in inflation adjusted terms to ZWL1.48b from ZWL1.69b in the prior year, whilst it grew by 329% in historical cost terms. Update on ICSID claim