National Tyre Services Limited Reports 39% Volume Growth in Q1 2023/2024, Driven by Marketing Initiatives

Published On: November 27, 2023Company: National Tyre Services Limited (NTS.zw)
What is the main driver behind the improved performance of National Tyre Services Limited (NTS) in Q1 2023/2024?
The main driver behind NTS's improved performance in Q1 2023/2024 are the various marketing initiatives that resulted in a 39% increased volume performance, improved stock supply which helped in dealing with demand, and an enhanced electricity supply that positively impacted the service sales units.

Summary

  • The foreign currency exchange rate drastically changed in Q1 2023/2024, affecting industry operations.
  • The government is implementing several measures to promote the use of the Zimbabwe Dollar to stabilize the currency.
  • In spite of these challenges, National Tyre Services Limited’s (NTS) overall unit performance improved due to enhanced stock supply.
  • Sales volumes for new tyres grew by 9% due to increased demand from fleet customers for Truck and Bus tyres.
  • Tube volumes rose by 100% from April to June 2023 due to improved stock availability and high demand from the agriculture sector.
  • Service sales units increased by 82% owing to improved electricity supply.
  • Budget brand volumes increased by 21% due to high demand from drive-in customers.
  • Overall, product volumes grew by 39% driven by marketing initiatives.
  • Retreading volumes fell by 27% due to rubber shortages.
  • NTS expects continued stability in exchange rates due to government interventions and plans to leverage the hot-season tyre demand for growth in retreading and new tyre sales.

Useful links

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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