- Turnall returned to profitability in Q3 2025, recording a US$92,091 after-tax profit, marking a clear shift from previous years’ losses
- Losses narrowed by 91% year-to-date, supported by improved production efficiencies, cost controls and stronger gross margins rising to 28%
- The company is set to commission a new fibre-cement sheeting plant in Harare in Q4 2025, signalling a strategic shift toward modernised and non-asbestos product lines
Harare - Turnall Holdings a Zimbabwe-based manufacturer of fibre cement roofing products, pipes, and concrete tiles has edged back into profitability recording a US$92,091 after-tax profit in the third quarter ended 30 September 2025 ,as its long-running turnaround programme begins to take hold.
The improvement underpinned by a sharp recovery in gross margins to 28% from 20% in the same period last year marks a notable reversal from the steep operating losses that have dogged the building materials manufacturer, including the US$3.2 million loss reported in 2024.
The company, has for several years grappled with falling production capacity, working capital limitations, power supply disruptions and the costly legacy associated with asbestos-based product lines.
However, the company’s latest quarterly performance suggests that the executive team’s restructuring initiatives and cost containment measures are beginning to yield sustained operational improvements.
Sales volumes rose by 7% to 9,150 tonnes even though turnover remained largely flat at US$3.3 million, reflecting a sales mix dominated by lower-value but higher-tonnage products.
Production output increased by 11% to 10,782 tonnes despite persistent power outages, enabling the business to meet market demand without inventory deficits.
The business generated US$809,101 in operating cash flow before working capital changes across the first nine months of the year, a sharp reversal from the US$882,423 net cash outflow recorded in the prior period.
This reduced reliance on short-term borrowing and helped stabilise liquidity, which has been a recurring challenge for Turnall.
The group attributes the recovery to tighter cost controls, improved plant efficiencies and a more deliberate approach to pricing and product mix.
The performance upswing comes as Turnall moves to modernise its product portfolio and reduce dependence on asbestos fibre, which faces tightening regulatory and market acceptability constraints.
A new cement sheeting plant in Harare is now almost complete and is expected to be commissioned in the fourth quarter of 2025. The facility is anticipated to expand product range, improve quality consistency, and enhance competitiveness against imports and alternative roofing systems.
At the same time, a feasibility study on converting the Bulawayo plant to non-asbestos sheet production has been completed, with pilot trial products now being developed for potential regional market entry.
Although the third quarter saw lower inflation volatility and greater currency stability due to tightened monetary policy, challenges remain, high borrowing costs and intermittent power supply continue to weigh on the broader industrial sector, including Turnall’s production operations.
However, improving economic growth expected to close the year around 6%, supported by strong agriculture, mining, and remittance inflows may support sustained construction sector demand, particularly in housing, public infrastructure and small-scale commercial development.
Looking Ahead, the company remains optimistic projecting that it will break even at operating profit level for the full year 2025, marking a decisive shift from the deep losses of the past year.
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