Masimba PAT up 168%
BUSINESS REPORTER
Masimba Holdings, an industrial and contracting company listed on the Zimbabwe Stock Exchange, saw its net profit soar by 168% to ZWL$59.94bn during the six months ended June 30, 2023 from ZWL$22.38bn posted during the comparable period thanks to improved production and exchange gains brought on by a net foreign currency asset position.
The company also benefitted from a strong, diverse order book that increased the topline.
In a statement accompanying the half year results, chairman Gregory Sebborn said the group performed satisfactorily during the period under review on the back of increased United States dollar sales.
“The group realised profit before tax of ZWL$59bn during the period under review from ZWL$26bn, representing 124% growth on the comparative period, mainly driven by production efficiencies, fair value gains on investment property, exchange gains emanating from a net foreign currency asset position and monetary loss adjustment. The group’s financial position remained robust with a strong and firm asset base, as total assets closed the period at ZWL$468bn from ZWL$184bn,” Sebborn said.
“The increase was mainly due to revaluation surplus and fair value gains realised on property, plant and equipment and investment property, respectively.”
Revenue for the group, in the six months period increased by 137% to ZWL$113bn from ZWL$48bn and this growth was mainly driven by a diversified order book in the roads and earthworks, mining and housing infrastructure sectors.
The proportion of United States dollar revenues in the period improved to 71% from 55% the comparable period in 2022 and the associated revenues and costs were converted to Zimbabwe dollars based on the Willing Buyer Willing Seller foreign exchange rates.
Sebborn said the cash generated from operations improved to ZWL$30bn from ZWL$0.2bn mainly attributable to business growth and improved profitability.
Capital expenditure incurred in the period to support the firm order book amounted to ZWL$5bn from ZWL$14bn which equated to US$3.6m from US$6.7m in foreign currency terms.
He said at the end of the financial period, total borrowings were at ZWL$1bn from ZWL$1.3bn during the comparable period.
“Included in the borrowings is a foreign currency denominated loan balance of US$440,000. Given the current lending rates and economic outlook, the group’s levels of borrowings are sustainable,” Sebborn said.
