Price remodel supports Turnall FY-20 operations

Author Name
Rugare Mukanganga
Author
Markets 1 month 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.


Stock Market ● 1 week ago
Market heavies weigh down ZSE, halts record breaking trend

Along with global shares, the ZSE plunged in mid-week trades following 8 straight sessions of record-breaking momentum out of the recent 12 consecutive sessions in which the market has been in positive territory. Rally was halted by market heavies which shed -1.73%, countering the gains from small caps. The losses were, however, largely fueled by 2 factors which include reduced demand post 2 w...


Stock Market ● 1 month ago
Stocks continue in losses but selloff fizzles

The local bourse extended losses to a 3rd straight session, pulling down weekly performance into the red as investors took profits. Before the setback the bourse had enjoyed a rare 10-day rally over which gains went past the 20% mark, highlighting one of the best-performance in the bourse’s recent history. The ZSE All Share Index fell by a further -1.62% to close the latest session at 5382.47...

Stock Market ● 1 month ago
Production Slide Continues at Border Timbers

The forestry & sawmilling specialists reported a second consecutive quarterly production volume declines. The drop in output was a continuation of production bottlenecks in the previous quarter, bottlenecks brought-about by market-wide Covid-19 disruptions.   Highlights for the Quarter (FY-20 Q3) Total Production Volumes ⬇️ 26% Sales Volume ⬇️ 25% Revenue ⬇️ 28%   Lumber increased its o...

Stock Market ● 1 month ago
Depressed Consumer Spending Hinders BAT Segment Performance

Tobacco retail and distribution company BAT posted 3% growth in sales volumes for the quarter ended March 2021 (FY-21 Q1). This on the back of a 12% sales volume decline at the end of 2020. Prevailing economic conditions driven by a Q1 Covid-19 lockdown however dragged sales in the period down.Q1 Highlights Market return of Dunhill  Dunhill sales up 91% Net Turnover up 75%   Premium brand Dun...

Stock Market ● 1 month ago
Balance Sheet Preservation Key In FBC FY-20 Performance

Recently released FY-20 financials revealed a mixed set of gains and losses by the Holdings Group, following a roller-coaster 2020 dominated by inflationary pressure and Covid-19 disruptions.  Highlights Cash & equivalents down 57% Asset Base up 19% Optimistic FY-21 outlook  As has been the trend in FY-20 banking industry results, listed financial institutions have sought to safe-guard ba...