- Turnall sales volumes increased 33% to 16,807 tonnes in HY26,
- Revenue increased 15% to US$5.81 million, while gross margin declined to 20% from 25% and the comprehensive loss widened to US$665,856.
- The new Harare plant has increased manufacturing capacity
Harare - Turnall Holdings a Zimbabwe-based manufacturer of fibre cement roofing products, pipes, and concrete tiles has increased sales volumes by 33% to 16,807 tonnes in the six months to June 2026 from 12,674 tonnes a year earlier, as the commissioning of its new Harare fibre cement plant expanded production capacity and lifted revenue by 15% to US$5.81 million, according to the latest financial results.
Production volumes increased 32% to 21,420 tonnes from 16,236 tonnes, with commercial production at the Harare plant beginning in March after testing and commissioning. The new facility has increased manufacturing capacity, while management has been working on machine performance, production yields and product quality during the initial operating period.
The increase in volumes came with pressure on gross profitability. Gross margin declined to 20% from 25% as Turnall maintained selling prices amid higher input costs, while commissioning the new plant increased production costs and a higher proportion of concrete products in the sales mix affected the margin.
Revenue increased from US$5.05 million to US$5.81 million during the period. Operating expenses declined by 4% as cost containment measures reduced the operating cost burden alongside the increase in turnover.
Finance costs increased 109% to US$139,800 after the Harare plant entered commercial production. Borrowing costs associated with the facility had been capitalised during construction and began flowing through the income statement once production commenced in March.
Turnall recorded a total comprehensive loss of US$665,856 for the half year, compared with US$244,884 in the comparable period. The company attributed the wider loss to lower gross margins, higher finance costs and the deferred tax accrual for the period.
The Harare investment has increased the capital employed in the manufacturing business. Property, plant and equipment stood at US$26.59 million at June, while borrowings included US$4.20 million of non current loans and US$1.11 million of current borrowings, with the loans used mainly to finance installation of the new plant and part of the Group’s working capital requirements.
Turnall generated US$285,451 in net operating cash flow during the first half. Investing activities used US$541,309, including US$301,371 on property, plant and equipment and US$239,938 invested in a joint venture, while closing cash stood at US$303,638.
The operating economics of the new plant now depend on the relationship between additional volumes and the costs attached to the expanded capacity. Turnall has identified production yields, waste reduction, conversion costs and equipment reliability as areas requiring attention as utilisation increases.
Turnall is also preparing additional manufacturing capacity for export markets through an upgrade of its Bulawayo sheeting plant to use synthetic fibres. The project is intended to support additional revenue generation and foreign currency inflows.
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