General Belting records solid performance
GENERAL Beltings Holdings Limited recorded a solid performance for the first quarter to March 31, 2022 despite a challenging business environment, on the back of carried forward stocks and orders from prior year.
At 307 tonnes, volumes for the period were 48 percent above same period prior year's volumes 207 tonnes.
Both operating divisions recorded growth in revenue and volumes compared with the same period prior year.
In view of the limited pricing options and limited raw materials supplies, turnover on an inflation adjusted basis grew 23 percent to $210 million from the $170 million recorded same period prior year.
On a historical basis turnover at $196 million grew by 104 percent from prior year's $96 million.
Gross margins and operating expenses were under severe pressure due to parallel rate indexing of local costs. As a result, operating profit lagged behind budget.
In a trading update for the quarter under review, company secretary Patrick Munsolution will enable firms to gain traction yanyi bemoaned the operating environment in the later half of the year. characterized foreign currency shortages “The absence of a cessation in the Rusand inflationary pressures having a knock sia – Ukraine crisis, logistical delays will on effect on businesses. continue to disrupt the flow of materials
The spectrum of policy measures into the sub-region. intended to arrest the volatile exchange “Therefore, local firms will be compelled rates have threatened the going concern to procure locally in order to avoid long status of businesses as the abrupt suspenlead times and working capital cycles,” he sionsaid.offacilitieswoulddislocatecashflow plans and further delay the movement of Munyanyi added the conflict in Ukraine raw materials from further afield. had emerged as a global flash point which
This has also been compounded by has spawned among others global logistical global shocks posing challenges to local constraints which have resulted in delayed businesses due to among others supply delivery of raw materials. chain disruptions caused by the conflict in He said: “Inevitably the conflict has negaUkraine. tively impacted economies through pass-on
“The raft of monetary policy measures increases on raw materials, energy, mining aimed at arresting the exchange rate volaand agriculture input costs.” tility have presented a profound challenge In light of this, Munyanyi said GB Holdto business operations. ings would focus on value preservation
“The impact of abrupt policy directives through continued profitability in the traincapacitates firm's ability to effectively ditional markets which are expected to be deploy working capital and erode market buoyed by improved mineral commodity confidence. It is hoped that as measures prices and increased local demand as firms take effect a more enduring and lasting opt to procure locally.