Listed manufacturer National Tyre Services Limited (NTS) recorded a 49 percent decline in total sales volumes to 19 709 units in the first quarter.
Management attributed to weakening volumes to the Covid-19 pandemic.
“Overall, volume performance in the first quarter 2020-2021 declined by 49% when compared to same period last year mainly due to COVID-19 induced national lockdown,” said the group in a trading update to June 30, 2020.
“Trading was suspended following the announcement of nationwide
lockdown in April 2020.
“Subsequent to that, May and June performance was affected by Covid-19 measures introduced that restricted movement of our customers into central business districts.”
Over the first quarter, NTS said tubes unit sales had the lowest decrease of 8% when compared to same period last year as the company continued to service farmers listed under the essential service providers during the total lockdown period.
New tyres sales in units were 47% below prior year, as “branches closed operations for a full month in April 2020 and importation of tyres was also negatively affected,” said the group.
NTS also reported that services volumes decreased by 57% compared to the previous quarter ended 30
June 2019 as customers could not travel as before due to the Covid-19 travel restrictions.
Going forward, the group anticipates prolonged effects of the pandemic on its operations, but will put in place measures to ensure business viability.
Management is also optimistic that the new foreign currency auction system will continue to improve foreign currency availability for businesses.
“The Covid-19 pandemic is expected to persist and its effects felt right across the economy,” said management.
“Key areas to watch to ensure the continued viability of the business will be cost control, an uninterrupted supply chain and avoidance of loss of capital against inflationary pressures.
“It is hoped that the foreign currency auction platform will grow to cater for the industry’s needs.”