Willdale suffers heavy revenue, volume decline

…but eyes second-half turnaround

HARARE -WILLDALE Limited’s financial performance for the half-year ended 31 March 2025 reflects a challenging operating environment marked by declining revenues, reduced volumes and ongoing cost pressures.

Revenue dropped significantly by 48% to US$3.1 million, down from US$6.1 million in the prior corresponding period. This substantial contraction was primarily attributed to a 30% decline in production and sales volumes, driven by severe working capital constraints that limited manufacturing capacity.

As well, average selling prices fell by 26% as the company faced heightened competition in the key common plaster brick segment.

The constrained top-line performance translated into a deepening of operating losses. Although the company managed to cut its operating loss nearly in half—from US$3.7 million in 2024 to US$1.8 million in 2025—the bottom line still reflected a loss of US$1.8 million for the period. Earnings per share deteriorated by 80%, with both basic and diluted EPS falling to -0.0010 US$ cents.

Source: Willdale

From a balance sheet perspective, total assets remained stable at US$32.6 million, marginally down by 1% from the previous year. However, total equity declined by 10% to US$21.0 million, highlighting the erosion of shareholder value due to continued losses. The company’s decision not to declare a dividend during the period highlights its focus on preserving liquidity and allocating resources toward stabilising working capital.

Despite these setbacks, management expressed optimism about a potential recovery in the second half of the financial year. A planned ramp-up in production volumes and efforts to regain pricing power in a competitive market are expected to drive improved profitability. If these efforts are successful, Willdale could begin to restore financial momentum, though the risks remain high given current capital constraints and external economic pressures.

While the interim results paint a picture of a company under strain, management’s forward-looking posture signals that strategic adjustments are underway to engineer a recovery.