Brickmaker Willdale says it remains optimistic about its short-to-medium-term growth prospects, buoyed by robust construction activity in residential cluster housing, commercial facilities, and educational infrastructure development across Zimbabwe.

In a trading update for the quarter ended June 30, 2026, Willdale said sustained appetite for building materials has established a solid demand baseline, even as operational constraints limited the company’s ability to fully serve the market.

“Brick demand is expected to remain strong in the short to medium term, driven by ongoing cluster housing projects and the construction of commercial and educational facilities,” Willdale said.

“The anticipated issuance of permits for the remaining land banks in the fourth quarter is expected to unlock additional funding for operations, supporting improved production efficiency, lower operating costs, and capacity utilisation of at least 70% from the current 35%.”

Revenue for the quarter increased marginally by 1%, largely due to limited stock availability. Management expects improved working capital in the fourth quarter to support higher output and accelerate revenue recovery.

“Average selling prices increased by 8% during the quarter, resulting in a year-to-date increase of 16%, in line with the target sales mix. Improved working capital availability in the fourth quarter has supported higher production levels, which is expected to drive revenue growth going forward,” Willdale said.

The group said plant availability remained satisfactory during the quarter, with extrusion volumes increasing by 11% and fired production rising by 44%.

Despite these gains, Willdale said operations were constrained by limited working capital. Sales volumes declined by 4% due to insufficient stock availability amid strong market demand.

The group said industrial stand sales decreased by 18% compared to the previous quarter, reflecting prevailing market conditions.

To capture unmet market demand, management is executing liquidity initiatives to fund operations and capital expenditures.

Willdale said proceeds from land sales, including progress on Phase 1 of Haydon Industrial Park, targeted for completion by the end of September 2026, continue to supplement cash flows.

Additionally, the expected issuance of regulatory permits for Haydon Phase 2 and Tenerife land banks in the fourth quarter is slated to unlock further funding.

“Development of Phase 1 of Haydon Industrial Park progressed well and remains on track for completion by the end of September 2026,” Willdale said.

The group said construction activity, particularly in housing and infrastructure development, remained strong during the quarter, sustaining demand for bricks and related building materials.

It highlighted that competition intensified as new brick manufacturers entered the market, although demand remained robust.