Oscar J Jeke – Zim Now Reporter
Turnall Holdings Limited, one of Zimbabwe’s major manufacturers of construction and building materials, reported a deepening loss for 2024, citing macroeconomic instability and high operating costs, but is optimistic about a rebound in 2025.
According to the group’s audited results for the year ended 31 December 2024, revenue slipped by 4% to US$12.04 million from US$12.56 million in 2023. Gross profit fell to US$2.34 million from US$2.92 million, with the margin narrowing to 19% from 23%.
The decline was mainly driven by rising raw material costs and exchange rate volatility, which the company struggled to pass on to price-sensitive customers.
Operating expenses rose sharply to US$5.74 million, raising the operating expenses-to-sales ratio to 48% from 35% the previous year. The surge was largely due to inflation pressures in the first and last quarters, including a US$1.2 million provision for obsolete inventory—mainly expired synthetic fibres and pipes—and US$267,771 in credit loss provisions. The group also paid US$111,710 in Intermediary Money Transfer Tax.
Turnall posted a loss of US$2.92 million, nearly double the US$1.5 million loss in 2023. Loss before tax widened to US$3.31 million, while basic and diluted earnings per share dropped to -0.07 cents, compared to -0.03 cents the year before.
Despite the bottom-line weakness, Turnall recorded a positive operational cash flow of US$1.48 million—recovering from a negative US$6.4 million in 2023. Capital expenditure surged more than fivefold to US$3.2 million from US$567,927, largely channeled toward building a new fibre-cement production plant and acquiring new templates for the sheeting plant in Bulawayo. The facility is expected to be commissioned in the third quarter of 2025.
Chairman Grenville Hampshire acknowledged the tough operating environment, citing liquidity constraints, subdued demand, and the effects of an El Niño-induced drought. However, he said the company is hopeful for a turnaround in 2025 on the back of ongoing capital projects and a potential rebound in agriculture and construction.
“There is hope for some recovery in 2025 due to the ongoing capital projects in the manufacturing and construction sectors, coupled with an expected rebound in the agricultural sector,” Hampshire said.
He added that Turnall would continue focusing on improving production efficiency and product quality while keeping costs under control. The company is aiming to strengthen competitiveness, grow market share, and improve financial performance in the medium term.
No dividend was declared for the year, as the company is prioritizing capital preservation and investment in capacity expansion.
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