Willdale Pins Recovery on New Modern Brick Plant I...

Willdale Pins Recovery on New Modern Brick Plant Investment

Audrey Galawu- Assistant Editor

Zimbabwe Stock Exchange–listed brickmaker Willdale Limited is banking on the construction of a new, high-efficiency production plant to reverse recent losses and secure long-term growth, as the company continues to wrestle with low production and stiff competition.

In its trading update for the quarter ended 30 June 2025, the company reported a 45% drop in revenue year-to-date compared to the same period last year.

Sales volumes also fell by 34% as shortages of working capital derailed both production and sales targets.

Extrusion volumes were 52% below the prior year, while fired production declined by 41%.

Despite the decline, demand for bricks remains strong, particularly from Zimbabwe’s growing housing projects in urban and peri-urban areas.

Willdale believes this presents a compelling opportunity to recover lost ground once it secures the necessary funding.

“We are entering a transformative phase in the next quarter with production, sales, and liquidity expected to strengthen significantly as volumes are increased to optimum levels,” said company secretary M. Munginga.

“Key to unlocking this growth is the strategic injection of capital for both operational requirements and investment in a modern, high-efficiency production plant.”

The new plant is expected to improve capacity and efficiency, allowing Willdale to expand its market share even as new manufacturers intensify competition in the sector.

While average brick prices rose 10% during the quarter—boosted by a focus on high-value product lines—the company said its common brick segment remains under pressure due to competitive pricing.

To raise the capital required, Willdale is pursuing an ambitious real estate and land development strategy. One of the identified land parcels received a development permit in May 2025, with authorities also moving to clear illegal occupants.

Once fully serviced, the land will be converted into high-demand residential and commercial stands.

In addition, the company’s Smartsuburb project in Mt Hampden—inside the boundary of the New City—is set to commence servicing and sales in September 2025.

Proceeds from these projects will be channelled towards working capital and the purchase of the new all-weather common brick plant.

Management is optimistic that the property investments will begin to yield material returns in the next quarter, providing a significant cash flow boost.

This, combined with technology upgrades, is expected to reposition Willdale for growth in Zimbabwe’s booming housing and commercial infrastructure sector.

The company also welcomed ongoing government measures to formalise business operations, saying they will help create a more predictable and fair environment across the industry.

By strategically linking its core brick manufacturing with property development proceeds, Willdale aims not only to modernise its production but also to strengthen its long-term resilience and deliver value to shareholders.