Nyashadzashe Ndoro
Chief Reporter
General Beltings Holdings, a Zimbabwe Stock Exchange listed rubber and chemical products manufacturer, has cited the power supply deficit as a major concern, amidst hopes that increased thermal power generation will augment national grid supplies and boost demand for its conveyor belts.
According to the company's unaudited financial results for the half-year ended June 30, 2024, the power supply deficit, exacerbated by the El Nino-induced drought, poses significant challenges to the economy.
However, General Beltings Holdings Chairman, Tichaona Mabeza, expressed optimism that the anticipated recovery in the mining sector, driven by firming mineral prices, will underpin the fortunes of the company's General Beltings Division.
"Although the challenges of the first half of the year were daunting, the anticipated recovery in the mining sector through firming mineral prices is a source of optimism as it underpins the fortunes of the General Beltings Division. The adverse effects of the El Nino induced drought on power generation are pervasive and debilitating to the economy.
"To ameliorate the current negative effects of power supplies deficit there would be need to augment power supplies with increased thermal power generation thus increasing demand for conveyor belts from General Beltings Division," Mabeza stated.
The company reported a 13% increase in total volumes to 455 metric tonnes, driven by Cernol Chemicals' market recovery efforts, while General Beltings' volumes declined by 37% due to softening platinum prices.
Despite challenges, General Beltings Holdings posted a 40% increase in operating profit to ZWG 14 million, attributed to cost reduction initiatives and improved process efficiencies.
Mabeza acknowledged the company's resilience amidst a fragile operating environment and expressed appreciation for employees' dedication and the Board's counsel.
General Beltings Holdings did not declare an interim dividend for the period under review.
"At their meeting on 26 September 2024, the Board considered the need for working capital preservation and resolved not to pay an interim dividend for the period under review," Mabeza stated.
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