By ETimes
HARARE – National Tyre Services (NTS) saw a 15% growth in new tyre sales volume for the nine months ended 31 December 2023 compared to the previous period, despite the challenging operating environment.
It comes as confidence in the local currency is so low that goods and services are mostly priced in greenbacks.
However, authorities are struggling to pull Zimbabwe from the grips of an economic crisis caused by a rapidly devaluing local currency.
“The volatility of the foreign exchange rate continues to negatively impact price competitiveness in the market,” the company said in a trading update for the third quarter to 31 December 2023.
“Prices of goods and services increased towards the end of the reporting period due to high festive season demand.”
Like any other business, NTS was not spared from power cuts.
“Erratic electricity generation towards the end of the year negatively affected turnaround time in our retreading factories,” the company said.
As for volume performance, new tyre sales volumes rose 19% in Q3 2023 when compared to Q3 2022 underpinned by various marketing initiatives.
Tyre services sales in units surged by 11% in Q3 2023 on the back of an increased volume of new tyres.
On the other hand, retreading volumes declined by 2% in Q3 2023 owing to production disruptions caused by electricity challenges.
Accordingly, overall volume performance appreciated by 20% in the first 9 months due to market driven procurement of tyres.