BY TATIRA ZWINOIRA
POWERSPEED Electrical Limited (PEL) says it has been using buffer stocks to satisfy demand after its outlets reopened under the ongoing lockdown to control the spread of coronavirus.
Powerspeed, like other companies, shut down their operations after the country went into lockdown on March 27 until early this month when the economy was partially reopened.
The leading supplier of electrical, hardware, building and home improvement products and services trades through its own chain of hardware retail outlets known as Electrosales Hardware.
“The shutdown of Zimbabwe from the end of March this year, has thrown the whole economy into turmoil, with some sectors, such as tourism, being more severely hit than others.
“Our operations were completely closed for a good part of the month of April, and we suffered substantial losses, as a result,” said PEL company secretary Martin Gurira in a statement accompanying the firm’s half-year financial report for the period ended March 31, 2020.
“We have subsequently reopened, and although volumes have not recovered to where they were before the shutdown, they have bounced back surprisingly well.
“Supply lines have been disrupted, but are steadily reopening and recovering.”
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He added: “In the meantime, our substantial buffer stocks have been able to satisfy the reinstated demand.
“It is still too early to be definitive, but it does appear that volumes have already recovered sufficiently to return us to profitability.”
Gurira expressed concern that the continued economic spiral would have a knock-on effect on consumer demand for their goods.
“It is clear that the Zimbabwean economy will shrink again in 2020, and that two significant sources of income for our customers, being diaspora remittances and tourism, will be significantly constrained,” he said.
“Despite this, we believe that we are well placed to continue our march to growing market share, and thereby grow shareholder value,” he said.
