HARARE – Powerspeed volumes were marginally higher in the third quarter to June 2020 due to increased market share in a number of product groups. The increased volume was recorded in spite of the dip in Aprill due to the coronavirus-induced pandemic.
In a trading update, Powerspeed said that volume throughput during the quarter was erratic with the national shutdown in April reducing throughput to almost zero for the greater part of the month.
Revenue rose 671.91% to $875.61 mln in historical terms while it was up 27.50% in inflation adjusted terms to $1.12 bln. Retail contributed the most to revenue, with engineering coming in at just $18.55 mln in historical costs.
The group noted that in spite of the increase in revenue, profitability was difficult to assess because of the rapidly depreciating exchange rates in the period. Margins were under pressure while expenses rose with inflation and devaluation.
The group said that volumes had recovered although there had been substantial changes in the product mix.
Going forward, the group says that it is difficult to predict the future performance of the group due to the uncertain environment but based on assessment of the balance sheet, there will be shareholder value in real terms.