HARARE – National Tyre Services (NTS) limited says its business plummeted for the first quarter to 30 June 2019 recording a 51 percent decrease in volumes uptake amidst a turbulent economic environment.
Likewise, in the period under review the re-treading line of business volumes decreased by 10 percent compared to the previous quarter in 2018.
Under the services line volumes also slackened by 36 percent compared to the same period last year.
However, the tyre making firm’s revenue for the period under review was 42 percent above budget at $8.6 million, 133 percent above the prior comparable period ending 30 June 2018.
In a statement accompanying the first quarter trading update NTS like any other industry said the company endured strong headwinds encompassing unavailability of foreign currency, power cuts and weak demand of their products.
“The Company remains profitable and positive cash flows were generated by the business in the quarter under review.
“The trading environment was characterised by continued shortages of foreign currency, steep increases in year-on-year inflation and reduced aggregate demand as businesses and consumers adjusted to the challenging environment. Productivity was negatively affected by power outages,” said NTS in a statement.
The firm earlier this year indicated that the new policy interventions had brought sanity in the market, especially to the accounting fraternity, which had been dogged by confusion following the switch from multicurrency to mono-currency regime.
NTS is the largest retailer of new tyres and tubes in Zimbabwe, (Imported and locally manufactured). The other main activity is re-lugging of agriculture and earth moving tyres and the procurement of truck tyres for the Zimbabwe Transport Industry and has 13 retail outlets situated throughout the country with 4 of these being located in Harare.
It is the distributor of tyres from reputable firms like Dunlop, Bridgestone, firestone, Yokohama, Bandag and Pirelli.