Listed tyre manufacturer and distributor, National Tyre Services (NTS) has recorded a 136% overall volume performance on the back of increased demand and strategic planning.
In a trading update for the period ended June 31 2021, the tyre manufacturer said recovery was recorded across the segments.
“New tyre volumes increased significantly by 162% when compared to the same period last year, driven by stock availability and focused marketing initiatives. Overall unit performance grew by 163% during the period under review as the Company employed survival strategies under this coronavirus operating environment,” the company said.
Retreading volumes also grew by 75% compared to the same period last year due to increasing demand from retreading customers.
“Trucking operations improved during the period under review when compared to the same period last year as Government imposed less restrictive measures to allow trucks to operate during the Covid-19 hit trading environment,” said the company.
A further 160% growth in tubes volumes was recorded in the period when compared to the prior period due to the high demand for tubes from the agriculture sector.
Notwithstanding the challenges of the Covid-19 pandemic, NTS said there were notable improvements in the economy, which included good grain harvests and a drop in the consumer price index, for the fifth straight month to 106.6% in June 2021.
The company said these positive developments spurred demand for tyres.
“Availability of foreign currency to import stock is key for sustainable business growth. Effective containment of the Covid pandemic will provide a conducive operating environment to promote volume growth, going forward. The company remains optimistic that the budget will be achieved by the end of the trading year,” added NTS.