By Natalie Chiwomadzi
TURNALL Holdings Limited says it has posted a turnover of $8.5 million in the first quarter despite constraints in sales.
The constraints are as a result of the liquidity challenges being experienced in the economy.
Speaking during the company’s annual general meeting, managing director Roselyn Chisveto said the turnover is 25% above what was realised in the same period last year.
“The company posted a turnover of $8.5 million for the first quarter which is 25% above the previous turnover of $7.0 million.
“The sales were negatively affected by the liquidity constraints, subdued aggregate demand and uncompetitive pricing due to the fixed exchange rate of 1:1 which was in place during the first two months of 2019,” she said.
Chisveto also added that “export sales contributed 0.13% compared to the prior comparable period contribution of 0.51% and this is attributable to uncompetitive prices in the region”.
Meanwhile, the company has also revealed that it is working on upgrading the non-asbestos plant in Bulawayo in order to improve production efficiency so that the production costs are reduced.
“The upgrade will help the company archive competitiveness both on the domestic market and export market. Key for Turnall is to maintain pricing strategy that guards against any potential losses,” she said.