Zimre posts 37% profit surge
ROBIN PHIRI
Zimre Holdings Limited (ZHL) has recorded a 37% profit increase, rising from USD6.82m to USD9.33 m, a USD2.5m n jump compared to the same period last year, as the group doubles down on strategic investments in infrastructure, industrialization, digital expansion, and value-chain development to drive revenue growth for the remainder of 2025.
The growth is attributed to the group’s subsidiary operations, which were profitable across the board except for the Wealth Management cluster, according to Desmond Matete, ZHL board chairman.
“The balance sheet remained strong, with the Group’s total assets closing the period at USD242.65 m, a 17% increase emanating from the growth in financial assets.
The Group maintained a strong cash position, generating USD10.36 million from operations. The cash to profit ratio ended the period at 1.11 times against a benchmark of 1.5 times,” Matete said.
“Total income rose by 20% from USD43.10m to USD51.59m, on the back of increased insurance contract revenue and investment returns, mostly fair value gains from equities and investment property.”
ZHL’s growth strategy for the remainder of the year is anchored on its strategic pillars aligned with the outlook of the Southern African region. Central to this expansion is the group’s real estate investment trust (REIT) portfolio, including the recently listed Eagle REIT on the Victoria Falls Stock Exchange (VFEX), which underpins key infrastructure projects in Mazowe and Victoria Falls.
“The REIT will bring world-class standards through partnerships with internationally acclaimed brands aimed at rejuvenating and expanding the country’s tourism and hospitality industry as well as medical facilities,” Matete said.
“Two anchor projects in Mazowe and Victoria Falls embody sustainable construction, and these developments are not only designed to reduce environmental impact but also generate jobs and support economic growth in the communities where we operate.”
Despite a mixed macroeconomic outlook for the current year, ZHL remains optimistic about the REIT’s prospects. Matete highlighted the REIT’s agility and capacity to adapt, innovate, and regenerate, allowing it to absorb potential shocks while continuing to provide security, growth, and profitability to shareholders and stakeholders.
Operating across the SADC region, Zimre Holdings has navigated a challenging macroeconomic environment, with Zimbabwe’s economy demonstrating resilience in the first half of the year, anchored on central bank monetary policies that introduced liquidity constraints.
Nevertheless, the company’s insurance contract revenue grew by 28%, from USD31.58m to USD40.31m compared to the same period last year.
“This impressive growth was driven by increased business acquisition, expansion of local and external markets, and product diversification across the Group’s insurance, reinsurance, and life and pensions segments,” Matete said.
