BRICK manufacturer, Willdale Limited, has narrowed its loss by 72,22% to US$1,79 million during its half-year financial period ended March 31, 2025, after registering a positive gain in the other income category and recording no fair value loss on investment property.
Last year, the company made a loss after tax of US$6,46 million, as the firm recorded a loss on other income of US$2,07 million and a fair value loss on investment property of US$2,71 million.
In a statement attached to its half-year financial results for the period ended March 31, 2025, Willdale chairperson Brian Mataruka said the demand for bricks remained strong, despite the rainy season.
Revenue fell by 48% to US$3,14 million during the period under review from the prior comparative period.
“This decline was driven by a 30% reduction in volumes, resulting from working capital constraints that limited production, and a 26% drop in average prices due to intensified market competition, particularly in the common plaster brick segment,” Mataruka said.
“These challenges, coupled with ongoing cost pressures, led to an operating loss of US$1,8 million (2024:US$3,8 million loss).
“However, management anticipates a turnaround in the second half of the year, traditionally the peak production season, which should boost volumes and support a return to profitability, driven by improved weather conditions and enhanced operational efficiency.”
He said several cost rationalisation initiatives were undertaken in the period under review.
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Production volumes (extrusion) fell by 43% compared to the same period last year, largely due to limited working capital and the impact of seasonal rainfall.
Willdale has implemented several strategic initiatives to secure adequate funding and ensure operational readiness for the peak production period from June to December 2025.
However, the brick firm’s ability to meet its objectives has lessened, as Willdale had just 83 US cents for every dollar of short-term debt.
Total assets were recorded at US$32,61 million at the end of March.
“The outlook for the remainder of the financial year remains positive, underpinned by strong fundamentals in the construction and property sectors. Housing and commercial development continue to show robust growth, supported by strategic partnerships with real estate developers,” Mataruka said.
“The board and management are focused on raising adequate working capital to support increased production of high-margin brick products. These efforts, which are expected to yield results from the third quarter of 2025, are critical to achieving scale, improving profitability and ensuring the long-term sustainability of the business.”
He said the company was actively exploring new project opportunities and wanted to tap into the government's recent commitment to resume educational and infrastructure development projects.
“The company is focused on maximising new revenue streams within the property development sector, while also increasing the production of high-margin bricks and enhancing consumer awareness of the long-term sustainability benefits associated with these premium hard-burn bricks,” Mataruka said.
