TURNALL Holdings Ltd’s aggressive marketing strategy into the regional market has paid dividends as turnover in historical terms amounted to $36,1 billion of which exports brought in $3,3 bi
This contributed 9% to total turnover.
Operating profit of $13,7 billion was achieved while attributable profit of $15,1 billion was made.
Turnall came into existence on July 1 2002 as a result of the demerger of TH Zimbabwe Ltd.
The company is part of the diversified SMM Holdings Ltd empire chaired by business tycoon Mutumwa Mawere.
Turnall managing director Phil Whitehead told shareholders in his annual report for the year ended December 31 that the company’s sales volumes were supported by aggressive marketing in neighbouring export territories, the largest being South Africa.
“Efforts were made to explore the Tanzanian and Botswana markets, with further plans to investigate the Angolan and Malawi markets,” Whitehead said.
“Irrigation and farming projects called for significant pipe volumes and, together with building columns into South Africa, had the pipe plant running at full capacity.”
Hyperinflation, shortage of foreign currency and their attendant effects on the economic sector characterized the year up to December 31.
The first half saw Turnall experiencing significant price increases, as cement was re-categorised after 15 months under price controls.
The prices of Turnall’s own manufactured products were deregulated in May 2003.
Whitehead said the second half of the year saw strong performance through to November 2003 when local demand softened.
He said the year 2004 had begun with some significant challenges.
“Volumes have declined significantly, with less than 50% volume levels being achieved compared to the same period last year,” he said. “Interest rates soared to levels of 900% in December 2003 and these have prevailed in 2004. Turnall has however been able to access the Reserve Bank of Zimbabwe 30% productive sector facility on all its borrowings. Export markets continue to show promise for increased volumes in South Africa and other regional markets.”
Turnall chairman Hillary Munyati said overall company volumes declined by 7,5% in 2003.
He said government effected a price freeze on a wide range of products, including Turnall’s own manufactured products, from the beginning of the year up to May 2003.
“As a result, there were no price increases in the first five months as Turnall’s own manufactured roofing products were under a price freeze,” Munyati said.
Inflation-adjusted turnover at Turnall stood at $83,2 billion, representing an 83% growth.
Operating profits at $7,7 billion represented 9% of turnover.
Munyati said attributable profits of $5,6 billion were achieved after charging a monetary loss of $11,7 billion and crediting net finance income of $19,2 billion.
The basic inflation-adjusted earnings per share achieved were 1 230 cents.