HARARE – Border Timbers, a leading timber company, has announced significant growth in its turnover for the fiscal year ending June 2023, reporting a 23 percent increase to US$15.8 million compared to US$12.9 million in the previous year.
This remarkable growth is attributed to several factors, including an improved product mix and consistent product quality of kiln-dried timber, resulting in better average selling prices.
Elias Hwenga, the Group Chairman, emphasized the company’s strong financial position, underpinned by a solid asset base that includes biological assets and property, plant, and equipment.
Hwenga noted the successful performance of harvesting operations and the effectiveness of the outsourcing strategy for harvesting, which has stabilized the sawmill log supply and enhanced plant capacity utilization.
However, lumber sales volume for the year saw a 10 percent reduction, dropping from 43,120 m3 in 2022 to 38,792 m3.
This decrease was primarily due to lower aggregate demand, particularly in the local market.
To counter this, Border Timbers is actively working on expanding its export market base, with a focus on markets that offer better average selling prices.
One of the company’s achievements during the year was the substantial increase in the area of land planted, with 1,327 hectares compared to 713 hectares in the previous year.
Hwenga explained that Border Timbers is committed to enhancing its biological assets through the application of best practices and improved planting methods, while also taking environmental concerns into account.
In response to environmental challenges, the company has allocated 6,400 hectares of Tilbury Estate for biomass establishment in collaboration with two tobacco companies.
The project, which has secured funding, aims to bolster the company’s biological assets and provide sustainable energy sources for tobacco curing, supporting the tobacco industry.
Hwenga acknowledged the ongoing risk of plantation fires, especially arson, which poses a significant threat to the business.
Border Timbers has taken measures to address this issue, including strengthening plantation patrol teams, engaging with the community, and acquiring new firefighting equipment.
Hwenga expressed gratitude to the community and law enforcement agencies for their cooperation in apprehending arsonists.
Regarding manufacturing, Hwenga mentioned that treated pole sales volume decreased by 28 percent to 7,297 m3 compared to 10,189 m2 in 2022, mainly due to timing differences in the acquisition of pole tenders.
He highlighted the company’s commitment to market development, actively seeking new opportunities in the local and regional markets.
In conclusion, Hwenga noted that Border Timbers currently maintains a healthy order book, providing the potential to meet its sales targets for the next two financial years.
The company’s focus on product quality, sustainability, and market expansion positions it for continued growth and success in the timber industry.
