Published: 08 July 2025

Zimbabwe's leading brick manufacturer, Willdale Limited, has significantly narrowed its loss for the half-year ended March 31, 2025, by 72.22%, reporting a US$1.79 million loss after tax compared to US$6.46 million in the same period last year. The improved performance was driven by a positive swing in other income and the absence of a fair value loss on investment property.

Last year, Willdale had recorded a US$2.07 million loss under other income and a further US$2.71 million fair value loss on investment property, both of which weighed heavily on its bottom line. In contrast, this reporting period saw relative stability on those fronts, providing much-needed breathing space.

Despite this progress, revenue declined by 48% to US$3.14 million, attributed to a 30% drop in sales volumes and a 26% decline in average prices amid intensified competition in the plaster brick segment. Willdale Chairperson Brian Mataruka explained that working capital constraints had limited production capacity, while the rainy season also disrupted operations.

"These challenges, coupled with ongoing cost pressures, led to an operating loss of US$1.8 million, compared to US$3.8 million in the prior period," Mataruka said in a statement accompanying the financial results.

However, Mataruka remained optimistic, projecting a stronger second half of the year as the peak production season approaches. The company expects improved weather and enhanced operational efficiency to boost output and drive a return to profitability.

To prepare for the second-half recovery, Willdale has embarked on strategic cost rationalisation and implemented initiatives aimed at securing adequate funding for operations. Nevertheless, the company's liquidity remains under pressure, with current liabilities outstripping short-term assets. As of March, Willdale had only 83 US cents available for every dollar of short-term debt.

Production volumes, particularly extrusion output, dropped 43% year-on-year, again reflecting capital limitations and weather-related disruptions. Total assets stood at US$32.61 million at the close of the reporting period.

Looking ahead, Mataruka expressed confidence in the company's prospects, citing robust demand in the housing and commercial construction sectors. He also highlighted strategic partnerships with real estate developers as key to sustaining growth.

"The board and management are focused on raising adequate working capital to support increased production of high-margin brick products," Mataruka said. "These efforts, expected to yield results from the third quarter of 2025, are critical to achieving scale, improving profitability, and ensuring the long-term sustainability of the business."

Willdale is also exploring opportunities to supply bricks for government-funded infrastructure and education projects, following recent state commitments to resume national development initiatives.

"The company is focused on maximising new revenue streams within the property development sector, while also increasing production of high-margin bricks and enhancing consumer awareness of the long-term sustainability benefits associated with these premium hard-burn bricks," Mataruka added.

Despite current headwinds, Willdale is positioning itself for a turnaround, banking on improved market conditions, strategic partnerships, and a strong second-half performance.
- newsday

You might also want to read this

• Willdale appoints new chair in flurry of board changes
• Willdale sales volumes in 5 months to Feb grow 10%
• Willdale's cash call under-subscribed
• Willdale shareholders approve $3,25m capital raise