General Beltings Lifts Operating Profit by 322% De...

General Beltings Lifts Operating Profit by 322% Despite Volumes Drop

Audrey Galawu- Assistant Editor

General Beltings Holdings Limited posted a 322% surge in operating profit to ZWG$29 million for the full year ended December 31, 2024, despite a 12% decline in overall volumes and a 49% fall in turnover to ZWG$77 million, reflecting tough macroeconomic conditions and currency volatility.

According to the group's financial results, gross profit margins dropped by 41% as a result of reduced throughput and increased dollarisation, but the company intensified cost containment measures, slashing operating costs by 43% to ZWG$46 million, from ZWG$81 million in the prior year.

Chairman Tapfumaneyi Mabeza said the group remained resilient in the face of economic instability and policy shifts introduced in 2024, including the adoption and subsequent devaluation of the Zimbabwe Gold currency.

“In response to the policy changes, the company focused on delivering a commensurate value proposition to its customers through innovative pricing models leveraging on the diversity of customers’ profiles and enhanced its competitive market positioning,” Mabeza said in a statement accompanying the results.

The rubber division, trading as General Beltings, recorded a 37% decline in volumes to 238 metric tonnes from 379 metric tonnes due to dampened product demand. Turnover in the division fell by 61% to ZWG$42 million, compared to ZWG$107 million in 2023, reflecting both volume pressure and constrained pricing flexibility.

Cernol Chemicals, however, showed some recovery, with volumes rising 5% to 574 metric tonnes, as it regained footing in its traditional markets and established new niche markets.

Despite the volume uptick, turnover for the chemicals division slid 19% to ZWG$35 million, impacted by stiff price competition from informal traders.

On the sustainability front, the company reaffirmed its commitment to environmentally sound practices. “The company collaborates and cooperates with the Environmental Management Agency and complies with all regulations in this regard,” Mabeza stated, noting that wastewater treatment procedures and raw material sourcing are continually reviewed for environmental safety.

The board did not declare a dividend, citing ongoing assessments of business viability and the need to preserve working capital. “At their meeting on 10 April 2025, the Board considered the going concern status of the business and resolved not to declare a dividend,” the chairman noted.

Looking ahead, the group anticipates improved demand driven by global commodity price recovery and a strong agricultural season.

“The company is poised to cope with increased demand… underpinned by enhanced production capacity and internally generated working capital funding,” Mabeza said.

The chairman also paid tribute to long-serving directors Dr. Israel Murefu and Mr. Chamas Dzumbunu, who passed away in January 2025, and welcomed three new non-executive board members.