Struggling forestry and saw milling firm, Border Timbers production volumes for the three months to September receded in comparison with the same period last year due to COVID-19 disruptions, the company said in its latest trading update.
The company managed to produce 13 663 cubic meters (m3) of poles and lumber against 17 986 m3 realized same period last year.
“Lumber production is lower compared to prior year due to disruptions in production and logistical bottlenecks that were caused by COVID-19 lockdown restrictions. Demand for Lumber remains very high both in the local market and the export market, hence significant positive movement is expected as the economies return to normalcy,” the company said.
Treated poles reflect a decline in production and sales volume compared to prior year; this was because of lower demand during Q1 of full-year 2021 and the adverse effect of the Covid-19.
Generally, global economies experienced the devastating effects of COVID-19 pandemic which resulted in lockdown measures which affected both our local and export markets.
The measures that were implemented by governments in the Southern Africa regional export market, affected the business’s supply chain, reduction in aggregate demand and logistical bottlenecks.
Hence, revenue for the period was restricted to ZWL$ 313.144 million as compared to ZWL$ 371.869 million which translated into a net loss before tax of ZWL$ 70.495 million.
The entity was placed under judicial management in 2016 after failing to service debts to several financial institutions worth US$20 million.
“No finalization has yet been reached from ongoing discussions with the other party to the claim. Discussions with Government will follow. Accordingly, the Company will remain under judicial management for the foreseeable future,” the company.