General Beltings Holdings Limited Sees 238% Increase in Gross Profit as Efficiency Upgrades Pay off

Published On: September 29, 2023Company: General Beltings Holdings Limited (GBH.zw)
What impact did the refurbishment and improved efficiency have on the company's performance?
These measures resulted in a boost in the company's gross profit by 238%, despite a decrease in total volumes. This was made possible due to increased availability, in-process efficiencies, and a steady demand from the mining sector.

Summary

  • The first half of the year saw measures implemented to rein in exchange rate deterioration and inflation, which had the effect of decelerating inflation and boosting overall stability of the power supply.
  • The company refurbished its boiler and begun plant maintenance as part of its strategic plan to enhance efficiency and compliance, despite experiencing increased dollarization and supply chain challenges caused by the Russia Ukraine conflict.
  • The group’s total volumes dropped by 18% due to reduced demand and plants refurbishment, however, there was a 162% increase in turnover due to a steady mining sector demand.
  • Gross profit increased by 238% due to improved plant availability and efficiencies, and operating costs remained within inflationary limits, with an overall operating profit of ZWL 3,3 billion recorded.
  • The company looks forward to consolidate its position in the agriculture, mining, and power supply sectors while enhancing manufacturing capacity to further reduce process costs.
  • The outlook for Cernol Chemicals is positive, with expectations of a recovery in the hospitality sector as the tourism sector rebounds.
  • An interim dividend has not been paid for the period under review due to the need for additional working capital.
  • The company thanks employees, management, and the board for their support during the challenges of the first half and looks forward to continued support in the fourth quarter.

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About General Beltings Holdings Limited (GBH.zw)

General Beltings Holdings Limited (GBH) manufactures and distributes general-purpose and specialised reinforced conveyor beltings, and rubber and chemical products. Its product range includes rubber-covered belting, polyvinyl chloride (PVC) belting, light-duty PVC belting, solid-woven belting, transmission belting and conveyor belt rubber skirting. Its two major customers are Anglo-American Corporation and De Beers. The company has two subsidiaries; Pigott Maskew and General Beltings. Pigott Maskew manufactures rubber products for mining, manufacturing and construction industries; with a product range covering large and small bore reinforced rubber hoses, rubber agricultural and construction rings, rubber sheeting, rubber gasket material, molded rubber products, rubber extrusions and rubberized charge car wheels. General Beltings Limited is listed on the Zimbabwe Stock Exchange

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