General Beltings Holdings Limited Reports 57% Increase in Volumes, Despite Competition from Imports: Q3 2023 Financial Summary

Published On: December 11, 2023Company: General Beltings Holdings Limited (GBH.zw)
What are the key factors influencing the recent performance and future outlook of General Beltings Holdings Limited?
Recent performance of General Beltings has been influenced by policy changes, low product demand, competition from imports, and improvements in infrastructure. Future prospects are based on global metal price recovery and the ongoing revival of hospitality sectors. Moreover, their production capacity improvements could assist in faster order conversions, setting them up for potential market rebound.

Summary

  • The financial report covers operations of General Beltings Holdings Limited from July to September 2023.
  • The quarter saw continued low demand for the company’s products due to liquidity issues.
  • Policy changes allowed for easier access to foreign currency, yet this led to high local manufacturing costs and increased competition from imports.
  • The refurbishment of certain company infrastructure resulted in improved internal process efficiency and competitiveness.
  • The company cleared all its backorders due to increased capacity from additional equipment and Cernol Chemicals is gradually recovering its traditional market post Covid-19 shut down.
  • The company’s performance this quarter improved significantly, with total volumes 57% higher than the past year. Notably, the Chemicals Division volumes rose by 82% due to market recovery efforts.
  • Total turnover for the quarter remained steady at USD 1.2 million, even with increased competition from imports.
  • The business outlook is contingent on the recovery of global metal prices for the rubber division and the ongoing recovery of hospitality sectors for Cernol.
  • The rubber division’s capacity for production is expected to assist in faster order conversion, positioning the company well for a potential market rebound.

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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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