Zimbabwe: Proplastics Posts Solid First Quarter Performance

ZSE-listed plastics pipe-maker Proplastics had a productive first quarter (Q1) to 31 March 2021 posting a 93 percent growth in sales tonnage compared to same period last year amid growing demand for their products.

As a result, sales revenues grew 29 percent above budget and 187 percent ahead of prior year.

“The strong performance was across all the segments of the business, namely irrigation, mining, merchants, civils and borehole drilling. Exports grew by 71%, contributing 7% to total revenues compared to 2% recorded in same quarter last year,” the company said in its Q1 trading update.

Gross Profit margins were maintained at the same level as prior year despite the challenges in the availability and pricing of raw materials in the quarter.

With the new factory in full operation, production responded positively with plant availability of 94 percent and capacity utilization of 80 percent.

The company had earlier been affected by a six week lockdown beginning of January but a quick recovery starting late February rescued the company and has set it on course to better fortunes.

“The solid first quarter performance has set a tone for a strong performance in the first half of the year. With robust contingency plans put in place to ensure constant supply of raw materials and the lockdown subsequently lifted at the end of February, it is expected that demand for the Group’s products will firm even further,” it said.

The company added that the new factory and the new mixing plant which are now fully operational from the end of 2020, have increased production capacity and enhanced efficiencies put the company on course to meet the rising demand.

Last week the company said its focus this year was to procure a new Polyvinyl chloride (PVC) 500mm extrusion production line to meet growing demand for large PVC diameter pipes.

Currently, its maximum capacity is limited to 400 mm diameter pipes

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