LEADING producer of rubber and chemical products, GB Holdings Limited’s performance has largely improved in the third quarter of 2020 after the relaxation of COVID-19 lockdown restrictions
The company has managed to improve in performance operating in a macroeconomic environment characterised by the relative stability of the exchange rate at the auction market which resulted in price stability.
In a statement, the group’s finance director, Patrick Munyanyi said the relaxation of lockdown measures and the subsequent opening up of most economic sectors improved the performance of the traditional markets for the chemicals division.
“The relaxation of COVID-19 lockdown measures in the period partially opened up the economy with aggregate demand responding accordingly,” Munyanyi said.
“The rubber division performance is ahead of the prior year and plan due to improved factory efficiencies and order book.”
“Although the overall performance to date is below budget due to the unintended lockdown effects globally and locally, the company forecasts to post improved performance when compared with the prior year,” he said.
The company expects the improved performance at the rubber division to continue on the back of a strong order book and the adequate stock cover of raw materials.
“The Chemicals division out turn for the year will be driven by a favourable product mix and solid logistical support. However, the resurgence of COVID 19 pandemic is cause for worry as it affects key markets of the chemicals division,” Munyanyi said.
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