Published: 29 June 2013

PG sales in the five months to May increased 21% to $14.3 million over the same period last year.

CE Hillary Munyati told the AGM this afternoon that the improved performance had been achieved against a background of low consumer demand and tightening liquidity situation.

"Overall the units are viable at current depressed levels"

He said the group had maintained overall gross profit while expenses had gone up 7%. "However the group is still maintaining high margins."

At PG Building supplies, sales were 28% up. Munyati noted the stocks had improved but are still far from satisfactory following the coming in of Sherwood International.

Last year, the group signed a 3-year Business Process Outsourcing agreement with Sherwood International South Africa to improve the group's merchandising division. Under the agreement, Sherwood acquired control and responsibility for all of the outsourcing requirements resulting in transactional funding, increased buying power, implementation of best practice controls and systems and instant global procurement capabilities.

Munyati said the distribution network was still intact and remains the key attraction in the unit.

Zimtile sales had gone up 47% with Munyati adding that the group had cemented its position as a trusted brand and was now well placed to weather any competition that could come from new entrants and cheap imports.  

PG Timbers sales were down 9% after the group took a decision to focus mainly on projects driven sales due to the lack of funding.

Glass was up 34% and margins were maintained while Mozambique was 6% ahead in US$ terms.

Munyati also said the group had reduced its shareholding in Manica Board & Doors with the proceeds used to restore credibility with the funders.

There had been no progress in selling properties identified as excess to the group because of the prevailing environment, Munyati said.

He said the group was in the process of reducing staff levels by 25% with negotiations to that effect having started this month and should be concluded in the third quarter.

At the AGM directors fees for the past year were approved at $52 563 and auditors fees at $194 753.
- finx