Willdale Limited

Willdale (Zimbabwe) – Reviewed Abridged Financials for the 6 months ended 31 March 2022

By Published On: June 30th, 2022Categories: Corporate announcement, Earnings
Willdale Limited 2022 Interim Results For The Half Year

Willdale Limited (WILD.zw) HY2022 Interim Report

Monthly inflation, which was largely driven by the depreciation of the Zimbabwe dollar against the United States dollar, continued on an upward trajectory during the period under review averaging 6% per month. The unstable economic fundamentals and the late rains negatively impacted on volumes and profitability.

Inflation Adjusted Financial Results
Revenue for the 6 months under review was 4% up compared to the same period in the prior year in inflation adjusted terms. Revenue growth was largely driven by a better average price from a better product mix. Operating profit margin declined to 2196 compared to 50% in the prior year due to cost pressures.

Demand for bricks was relatively high in the period under review. However, shortages of the fast moving plaster range caused by the extended rains affected the order fulfilment rate, Sales of face and load bearing bricks improved significantly from larger projects. Sales volumes declined by 6% compared to the prior year. Housing development remained the dominant driver of volumes and revenue.

Production restarted in February after a successful planned annual plant maintenance program. However, the extended rainy season disrupted the production plan leading to product shortages in the second quarter. Weather conditions have since improved and the situation is fast returning to normal. We are confident of meeting production targets for the year as long as electricity supply remains stable.

I was appointed Chairman of the Board with effect from 19 May 2022. In that regard, I would like to thank my colleagues on the Board for entrusting me with this immense responsibility.

The uncertain economic environment presents challenges to the construction industry in general. However, a lot will depend on how successful measures by government to stabilize the economy will be. Existing demand for bricks for housing will drive revenues and profitability in the remaining half of the year.

No dividend has been declared with respect to the period ended 31 March 2022 in view of the need to preserve cash for operations.

On behalf of the Board, I wish to thank the management team and staff for their hard work in a challenging environment. We are always grateful to our shareholders, suppliers, customers and other stakeholders for their invaluable support.

C Makoni
23 May 2022

Willdale Limited (WILD.zw)

Share price: 223.58 ZWL cents (-9.36 | -4.02% – 16/08/22)