Price remodel supports Turnall FY-20 operations

Author Name
Rugare Mukanganga
Author
Markets 6 months ago

In the 12-month period ended December 2020, the construction industry specialist faced operational challenges on both domestic and international markets, dampening year-end reported volumes and Group earnings.

Calendar months of trading were unexpectedly deducted due to nation-wide Covid-19 lockdowns.

 

Turnall FY-20 Price & Volume Movement

On the domestic front, revision of central bank policies on multi-currency pricing led to Group price model alterations which increased USD sales and drove a gradual shift away from its uncompetitive export division. With logistical constraints internationally, importation and exportation of production material and finished products were disrupted.

Exports were down 43% from prior year volumes as the Group responded to trading difficulties while reducing product export focus. In-spite of aforementioned challenges, Turnall reported an increase in sales for the period, 9% up from 2019 volumes. As market conditions stabilise and competitiveness is regained, the Group will resume its export drive to on-demand regional markets – Botswana, South Africa and Zambia.

Turnover in the period ended December 2020 was 3.7% lower than prior year revenues following currency conversions at a market fixed rate. Year-end profit was 62% lower than 2019’ earnings at ZWL 164 million.


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