This has been a year of proactive and painstaking financial management for Dolphin Bay. As a result, we were able to build up the company’s resilience, despite the economic pressures of our times.
Happily, our revenue growth exceeded our expectations slightly, thanks to the hard work of our team in gaining a few new customers, a slightly higher demand for our timber preservative in local markets, and efficiencies by the factory teams.
We have automated our factories, which reduced inefficiencies while optimising the quantity and quality of the CCA we produce; introduced a new credit control system, and carefully manage all our expenditure.
These measures were necessary and some felt like chores at first – we’re sure all the team would testify to this – but they made business far more satisfying in knowing that we are setting a firm base: the need to communicate clearly and frequently within our team and with our clients has resulted in a deeper understanding of one another’s roles and circumstances, a better flow of work, and a greater sense of calm.
The efficiencies consist of the automation of our factories, which optimised the quantity and quality of the CCA we produce; a new credit control system, and careful management of all our expenditure.
A wake-up call
This year’s challenges were varied and substantial, as always.
Late last year, we began experiencing difficulties due to large quantities of very delayed payments from clients in some regions, which continued into 2024. The Rand’s value sank in the initial months of this year, increasing the cost of the raw materials we import. We adopted measures to address each issue.
The very late payments were a wake-up call that we needed new measures to safeguard the future of the business, especially after the collapse of three customers’ businesses, two of which were stalwarts of the industry. This was a shock to our business and made us question our structures.
Our response was to develop a credit exposure model, which provides clients in certain regions with insight into their stock on hand and allowable credit, versus future shipments.
This has given the customer and ourselves insight into the prospect for shipments, so that both companies can plan better. Our customers have adopted the credit model as a useful management tool. It was not easy at first, even for ourselves, as we tend to be overly generous towards our customers. We are grateful that they have seen the benefit of the model and our continued commitment to serving their businesses.
The Rand’s weakening in the first few months of the year led to vastly higher import costs, and volatility in the price of raw materials posed a challenge as some of their costs skyrocketed in early 2024. This required that we look at our costs very carefully. We’ve also became more disciplined this year with our own internal expenditure.
Our outlook for next year is cautiously optimistic. We anticipate favourable export conditions, a steady if modest growth in sales, and will continue to focus on efficiencies within our operations.
Cautious optimism for 2025
The power of team collaboration has been a key takeaway for us this year. Our collective effort made a tangible difference to our operations and finances.
The outlook for next year is cautiously optimistic. We anticipate favourable export conditions, a steady if modest growth in sales, and a continued focus on efficiencies within our operations.
Of course, it’s impossible to accurately predict the macroeconomic influences on our business, which could range from shifts in US-China tariff policies and commodities prices to the Rand-dollar exchange rate. The conditions in which we do business are always changing, so we need to keep up the pace by continuing to adapt and improve.
We remain up for the challenge and look forward to 2025.
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