Published: 3 hours ago

Brick manufacturer Willdale Limited is banking on its property investment strategy to turn around its fortunes after sliding deeper into financial strain, with revenues nearly halved in the first half of 2025.

The company's financial update for the half-year ended March 31, 2025, shows revenue fell by 48% to US$3,14 million compared to the same period last year, resulting in a loss of US$1,79 million. At the end of the reporting period, Willdale held only 83 US cents for every dollar of short-term debt, leaving it undercapitalised and struggling to fund day-to-day operations.

Despite the gloomy numbers, management said the outlook remained positive, pointing to upcoming land sales and stand development projects expected to inject fresh cashflow.

"We expect our property investment strategy to begin yielding material returns in the next quarter, with land sales and stand development providing a substantial boost to cash flow. This will allow us to modernise production technology, enhance efficiency and expand market share," the company said.

Willdale highlighted its Smartsuburb project in Mt Hampden - within the new city boundary - as one of its flagship investments, with servicing and sales scheduled to commence next month. It added that a land parcel cleared of illegal occupants after receiving a development permit in May 2025 would soon be fully serviced, enabling sales of high-demand residential and commercial stands.

"These property projects are positioned to generate strong returns, with proceeds directed towards strengthening working capital and funding the acquisition of a new, all-weather common brick plant," the firm noted.

The company said Zimbabwe's ongoing housing and infrastructure growth, fuelled by both government and private sector initiatives, provided compelling opportunities for expansion. It expressed confidence that policy measures to formalise business operations would level the playing field, creating a predictable and fair environment for market participants.

However, a shortage of working capital during the reporting period hampered production and sales. Year-to-date extrusion dropped 52% compared to last year, while fired production fell 41%, and sales volumes declined 34% in line with lower output.

Revenues were down 45% year-to-date, though average prices rose 10% thanks to a strategic shift toward higher-value product lines. Management admitted that common bricks remained under pressure from competition but argued that premium categories were cushioning overall performance.

The US$1,79 million loss marks an improvement from the US$6,46 million recorded in the same period last year. Willdale attributed this narrowing of losses to growth in other income streams and the absence of fair value losses on its investment properties.

"Management is pursuing various options to raise working capital and ramp up production while the peak production season lasts," the company said, adding that it sees the next quarter as a "transformative phase" for operations, sales, and liquidity.
- newsday

You might also want to read this

• Willdale narrows loss-making position
• 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