National Tyre Services Limited posted a challenging performance for the financial year ended 31 March 2025, reporting a 25% decline in revenue to ZWG$143,358,489 and a net loss of ZWG$121,199,536 despite competition from the informal sector.
The company’s gross profit decreased by 41% to ZWG$45,969,409, while operating expenses were reduced by 17% to ZWG$70,132,646. Basic earnings per share fell to a loss of 48 cents compared to a 27-cent profit in 2024.
Reflecting the company’s cautious approach, the Board decided “not to declare a dividend for the year, focusing instead on enhancing working capital.”
On operational resilience, the report highlighted:
“Our core retreading operations in Harare and Bulawayo sustained production levels, underscoring our technical expertise and commitment to providing value-driven solutions.”
The company continued to supply a wide range of tyres from leading brands such as Dunlop, Bridgestone, and Comforser, serving passenger, commercial, and agricultural sectors.
NTS also maintained “essential support services, including 3D wheel alignment, tyre management solutions, and fleet surveys, reinforcing our position as a comprehensive service provider in the industry.”
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Looking ahead, the report expressed optimism about the currency stability brought by the new Zimbabwe Gold (ZWG): “We anticipate a rise in tyre demand, driven by government-led infrastructure projects, particularly in road rehabilitation.
"Our new supply chain strategy, focused on importing affordable and meticulously engineered tyre brands, is designed to ensure seamless stock availability and improve our competitive edge.”
On sustainability, NTS reaffirmed its ESG commitments: “Our primary environmental contribution is through our extensive tyre retreading programme, which significantly reduces waste and promotes a circular economy…
"We foster an inclusive and diverse workplace, with women representing 42% of our executive management team. We actively contribute to national development by offering internships and apprenticeships, facilitating skills transfer and enhancing youth employability.”
The report also emphasized governance and risk management:
“Key risks identified include unfair competition from the informal market, global tariff fluctuations, and liquidity constraints. Management conducts periodic risk evaluations and implements robust mitigation strategies to ensure our plans remain on course.”
Despite current liabilities exceeding assets by ZWG$55,239,098, the company remains committed to a turnaround strategy “leveraging our technical expertise and experienced workforce to enhance customer service, retain market share, and fortify our branch network for sustained growth.”
Key Figures:
- Revenue: ZWG$143,358,489
- Net Loss: ZWG$121,199,536
- Basic EPS: (48) cents
- Dividend: ZWG 0.00
- Executive Gender Diversity: 42% women
- Current liabilities exceed current assets by ZWG$55,239,098
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