Willdale back in the black, FY revenue up 25pct

Willdale back in the black, FY revenue up 25pct

HARARE, December 18  (The Source ) - Brick maker Willdale on Friday reported a 25 percent increase in revenue to $8,8 million in the full-year to September on improved sales and production volumes.

The company swung to an operating profit of $1,2 million from an operating loss of $600,000 last year. Sales during the year registered a 40 percent increase, although average prices declined by 11 percent as product mix remained skewed in favour of low margin common bricks.

Profit after tax for the year was $214,000 compared to a loss of $931,000 in 2014.

Production costs were down 22 percent at $ 6,1 million following several cost management initiatives during the year

Chairman Alex Jongwe said in a statement accompanying the results on Friday that prior year investment on plant refurbishment and acquisition of equipment resulted in improved capacity utilisation to 70 percent from 60 percent previously.

"Better efficiencies and cost management led to reduced cost of production and improved capacity production .The plant is now poised to meet production in excess of 100 million bricks per annum," said Jongwe.

"We continue to explore various means to improve efficiencies and further reduce the unit cost of production without compromising on the high quality standards required by our customers."

Capital expenditure for the year amounted to $327,000 and was financed through cash flows from operations.

Depreciation charged on property, plant and equipment amounted to $1 million compared to $70,000 the previous year.

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