DT Correspondent
HARARE: Brickmaker, Willdale Bricks says its production declined by 16 percent during the quarter ended December 31, 2023 due to incessant electricity load shedding.
In a trading update, the company secretary, Mavuto Munginga said the company would continue to engage ZESA over the crisis.
“Sales volumes dropped by nine percent compared to the prior year. Demand for bricks remained high though, driven largely by construction of cluster homes in urban areas.”
Munginga said the tax measures, including the reclassification of clay bricks as VAT-liable, would have a short-term impact on business.
“The taxation measures introduced for the year 2024 which include the reclassification of clay bricks as liable to VAT, will impact on business in the short term, especially from price sensitive customers who are not VAT registered and cannot recover input tax.
“The business remains viable, with a model that continuously provides required working capital to support operations. Focus remains on managing costs, margins and cash flows” he further added.
The company’s revenue for the quarter increased by 130 percent in hyperinflation terms and by 835 percent in historical terms compared to the prior year.
“Revenue continued to be impacted by exchange rate distortions. The company is considering a change in functional currency to the United States dollar in view of the increased ratio of transactions conducted in US dollars. This initiative, which will only be adopted at the beginning of the new financial year, is expected to deal with reporting distortions emanating from multi-currency transacting.”
