National Tyre Services Limited Reports 15% Growth in New Tyre Sales Volume in Q3 2024

Published On: February 19, 2024Company: National Tyre Services Limited (NTS.zw)
What are the key takeaways from National Tyre Services Limited's Q32024 Interim Report?
Despite challenges, the company saw significant growth in new tyre sales (15%) and tyre services sales (11%) in Q3 2024. They also report an overall volume performance improvement of 20% year-to-date. However, retreading volumes dropped by 2% due to electricity supply disruptions. Looking ahead, the company shows optimism towards government-introduced tax regulations and plans to fully recover their business by remodeling and implementing cost-saving measures.

Summary

  • The operating environment was challenging due to the fluctuation of the foreign exchange rate, which impacted pricing in the market.
  • Despite issues such as high demand during the festive season and unstable electricity generation affecting productivity, National Tyre Services saw a 15% growth in new tyres sales volumes from April 2023 to December 2023 compared to the previous year.
  • New tyre sales volumes saw a significant growth of 19% in Q3 2023 compared to Q3 2022, a result of the company’s marketing initiatives.
  • The sales of tyre services in units had an increase of 11% during Q3 2023 compared to Q3 2022, thanks to the increase in the volume of new tyres.
  • Retreading volumes suffered a minor drop of 2% in Q3 2023 compared to the same timeframe the previous year due to disruptions in production caused by electricity issues.
  • There was an overall improvement of 20% in volume performance up to December 2023 compared to the previous year, attributed to a market-driven procurement strategy.
  • Looking forward, National Tyre Services expresses optimism about new tax regulations introduced by the government, which they believe will reduce unfair competition.
  • In efforts to recover completely, the company plans to remodel the business and continue implementing cost-saving measures throughout the year.

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About National Tyre Services Limited (NTS.zw)

National Tyre Services Limited is the largest distributor and retailer of new tyres and tubes for the automotive industry in Zimbabwe. Its focus is on re-lugging tyres used in the agricultural and earthmoving sector and the procurement of truck tyres for the Zimbabwe transport industry. Popular tyre brands sold by National Tyre Services include Dunlop, Firestone, Bridgestone, Yokohama, Pirelli, Bandag, Regal and Comforser. It offers products in its ranger catering for sedans, SUVs, off-road vehicles, light trucks and heavy-duty trucks and buses. Its service outlets deal with wheel alignment, wheel balancing, product support and inner tyre tubes. The company has a national footprint with 12 retail outlets in major towns and cities in Zimbabwe. The re-lugging factory is in Harare and Chiredzi and re-treading and procurement of truck tyres is done out of Harare and Bulawayo. National Tyre Services Limited is listed on the Zimbabwe Stock Exchange

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