馃嚳馃嚰ZimbabweSouthern Africa
GB Holdings reports 96% profit decline due to exchange losses
via NewsDay Zimbabwe6 min read
Industrial manufacturer GB Holdings Limited recorded a 96.21% drop in profit after tax, falling to US$38,950 for the financial year ended December 31, 2025. This significant decline from US$1.02 million in the prior year is primarily attributed to negative other income driven by exchange losses. The company, which produces and distributes rubber and chemical products, also faced working capital challenges. Total volumes decreased by 19% to 779 metric tonnes, down from 953 metric tonnes, due to these constraints and reduced aggregate demand. Despite the volume decline, total turnover increased by 43% to US$4.284 million, up from US$2.99 million, due to a favorable product mix. Gross profit also rose by 26% to US$1.756 million. Costs were 8% lower than the previous year, supported by cost-reduction initiatives. The company's current liabilities exceeded its current assets by US$145,533. To address this, GB Holdings has outlined a 2026 strategic plan focusing on strengthening revenue through confirmed orders, improving production efficiency, securing external working facilities, and enhancing operational resilience. The company's balance sheet remained resilient, with total assets at US$5.64 million, an increase from US$5.22 million in the prior year. GBH chairperson Tichaona Mabeza anticipates tapping into expected economic growth and strategic investments in energy and power infrastructure to drive demand for conveyor belts and growth in the Chemicals Division.
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
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