Africa-Press – Zimbabwe. CONSTRUCTION firm, Turnall Holdings Limited, posted a profit after tax of US$92 091 the third quarter ended September 30, 2025, as it reaps from turnaround strategies. In June, Turnall revealed plans to resize the business to improve profitability and flows, following a loss-making streak.
In its financial year ended December 31, 2024, Turnall widened its loss-making position to US$2,92 million due to an increase in inflation-driven operating expenses.
Part of its turnaround plan included accessing additional loan facilities from shareholders and a financial institution during its half-year financial performance ending June 30, 2025.
“The gross profit for the quarter was 28% compared to 20% reported last year, and this is attributed to improved production efficiencies and the ongoing cost containment initiatives being implemented by management,” Turnall said in its trading update for the third quarter ended September 30, 2025.
“The overall gross margin for the 9 months was 26% up from 19% achieved last year. As a result, the business recorded a profit after taxation of US$92 091 as the turnaround strategies are starting to bear fruit. On a year-to-date basis, the group has seen a 91% reduction in the loss after taxation, which is a positive development.”
During the quarter under review, turnover was US$3,3 million, 1% below last year, despite the sales volumes for the quarter going up by 7% to close the period at 9 150 tonnes.
Turnall attributed the discrepancy between revenue and volumes to the sales mix, which had a higher proportion of low-value, high-tonnage products compared to 2024.
Year-to-date sales, however, were US$8,3 million, representing a 6% drop compared to the same period last year, while sales volumes, at 27 348 tonnes, were 11% below the prior year.
“The group produced 10 782 tonnes of product during the 3rd quarter of 2025, representing an 11% growth compared to the same period last year despite the power outages experienced during the period,” Turnall said.
Production levels were adequate to meet sales requirements during the quarter under review. The Tile Plant was put on a planned shutdown for 12 days in August 2025, to allow for electrical installations in respect of the new fibre-cement sheeting plant being set up in Harare.”
Turnall reported that the business generated US$809 101 from operating activities before working capital changes for the nine months ended September 30, 2025, compared to a net cash outflow amounting to US$882 423 recorded last year.
“The thrust by management in the current year was to ensure that the business was able to generate adequate funding to meet its operational requirements and reduce the reliance on borrowings for operational and capital expenditure requirements,” Turnall said.
The group said its turnaround strategy would be achieved through revenue growth, increased production efficiencies and continued cost containment initiatives.
“The installation of the state-of-the-art fibre-cement sheeting plant in Harare is now almost complete, and the plant is expected to be commissioned in the 4th quarter of 2025. This will result in an improved product offering for our valued customers, among other benefits,” Turnall said.
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