Chipo Chaumba Business Reporter
Milling and timber manufacturing company, Border Timbers, posted a sharp increase in revenue to $38,4 million for the year to June 2019 from $21,3 million prior year, but its loss position widened on the back of exchange losses.
In a trading update, judicial manager Peter Bailey, said the positive revenue performance was mostly driven by better average selling prices on Lumber.
The company also reported an increased net loss before tax of $12,9 million from $340,696. This was after the company took into account an unrealised exchange loss of $24,1 million on a foreign loan.
Mr Bailey added that the operating environment characterised by headwinds in the form of Cyclone Idai and general power outages, had a negative impact on both production and sales volume.
He said the knock-on effect of the cyclone resulted in the Charter sawmill resuming operations in the first week of May 2019, thereby negatively affecting both production and sales into the market as the road infrastructure was decimated.
“The incessant power outages especially in the month of June 2019, negatively affected production at the Sheba sawmill thereby exacerbating full year production with knock-on effect affecting sales volume.”
Production and sales volumes also went down on the back of a dilatory export market, according to Mr Bailey.
Production of electricity transmission poles also went down drastically to 12,647 m3 from 16,488 m3 recorded in the prior year comparative. Sales volumes dropped to 14.551m3 from 16,952m3 recorded in 2018 comparative.
There was also a decline in treated poles production and sales.
“Treated poles reflect a decline in both production and sales as they are mostly tender based and there has been a general slowdown in the export markets hence low production compared to comparable period June 2018,” said Mr Bailey.