Liquidity challenges choke Willdale, sales volumes drop
LISTED brick manufacturer Willdale Limited continues to grapple with severe liquidity pressures that have constrained production and prevented the company from fully capitalising on strong demand for infrastructure-related products. Tight working capital, high borrowing costs and limited access to bank funding have made it difficult for the company to mobilise the financial resources required to […] The post Liquidity challenges choke Willdale, sales volumes drop appeared first on NewZimbabwe.com.
Black News 
LISTED brick manufacturer Willdale Limited continues to grapple with severe liquidity pressures that have constrained production and prevented the company from fully capitalising on strong demand for infrastructure-related products.
Tight working capital, high borrowing costs and limited access to bank funding have made it difficult for the company to mobilise the financial resources required to boost productivity.
For the half-year ended March 31, 2026, Willdale reported an operating loss of ZWG39.9 million, equivalent to about US$1.6 million, as sales volumes plunged 50%.
Cash flow constraints also restricted plant maintenance, resulting in extrusion volumes falling by 28% and fired production declining by as much as 52%.
Presenting a trading update for the quarter ended June 30, 2026, Willdale company secretary Mavuto Muvingi said the liquidity challenges had persisted despite strong activity in the construction sector.
“Construction activity, particularly in housing and infrastructure development, remained strong during the quarter, sustaining demand for bricks and related building materials. However, constrained market liquidity continued to limit access to funding for working capital and essential capital expenditure,” he said.
To ease the funding pressure, Willdale has started selling industrial stands at its Haydon Park property to unlock fresh capital.
Plant availability remained satisfactory during the quarter, with extrusion volumes increasing by 11% and fired production rising by 44%.
Despite the improvement in production, operations remained constrained by limited working capital.
Sales volumes declined by 4% during the quarter due to insufficient stock availability, despite strong market demand.
Industrial stand sales also fell by 18% compared to the previous quarter, reflecting prevailing market conditions.
Revenue for the quarter increased marginally by 1%, largely constrained by limited stock availability, while year-to-date revenue remained 18% below the prior year.
Average selling prices increased by 8% during the quarter, resulting in a 16% year-to-date increase, in line with the company’s targeted sales mix.
Muvingi said management was continuing to pursue funding options to strengthen the company’s working capital position and support capital expenditure.
“Management continues to pursue funding initiatives to strengthen working capital and support capital expenditure requirements. Proceeds from stand sales continue to supplement internally generated cash flows. The anticipated issuance of permits for Haydon Phase 2 and Tenerife is expected to unlock additional funding opportunities,” he added.
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