Zimpapers Logo

Nelson Gahadza

Business Reporter

National Tyre Services (NTS) says market-driven premium tyres drove volumes during the year to March, 2024 after a 24 percent surge in sales compared to the same prior year period.

Chairman Mr Rutenhuro Moyo, in a statement of financials, said a solid and long-term trading relationship with suppliers sustained business operationsthrough seamless supply of stock.

“Although the company closed four retail outlets at the beginning of thefinancial year, National Tyre Services managed to maintain a strong presence inaffected areas through personal selling,” he said.

NTS is the largest distributor and retailer of new tyres and tubes for theautomotive industry in Zimbabwe.

Its focus is on relugging tyres used in the agricultural and earthmovingsectors and the procurement of truck tires for the Zimbabwe transport industry. Popular tyre brands sold by National Tyre Services include Dunlop,Firestone, Bridgestone, Yokohama, Pirelli, Bandag, Regal, and Comforser.

According to Mr Moyo, the company retained a large retreading customer basethrough improved turnaround time and unmatched workmanship.

As a result, retreading sales volumes rose by 10 percent from April 2023 toMarch 2024 when compared to April 2022 to March 2023.

During the year under review, sales grew by 95 percent in inflation-adjustedterms to  $259,669 billion compared to $133,291 billion during the same period in 2023.

Gross profit increased by 39 percent to $105,314 billion compared to $75,752billion in the prior year.

Mr Moyo said total operating expenses increased significantly to $114,067billion from $66,775 billion in 2023, resulting in the company incurring a lossbefore tax of $39,276 billion from a loss of $7,253 billion in the previousyear.

Mr Moyo said NTS is upbeat that the strategies being implemented by theauthorities to boost demand for Zimbabwe Gold (ZiG) currency will stabiliseinflationary pressures and enhance market acceptance and confidence.

He said looking ahead, the company envisaged leveraging on the rollingextensive road rehabilitation programme, which will improve infrastructure andenhance road safety, potentially leading to increased vehicle traffic anddemand for our tire services.

“Already, the company has realised strong demand for light truck and luxurymotor vehicle tires during the buildup to the SADC summit.

“National Tyre Services intends to boost profitability and market sharethrough offering a balanced product portfolio of meticulously engineered tyrebrands,” he said.

He added that the company is optimistic of a return to normal peak season inthe second half of the year, as typically hot and rainy seasons drive demandfor tires and related services.