Listed companies bullish about growth prospects

SEVERAL listed companies are confident about prospects for growth, profitability, and consolidation of operations this year, taking advantage of the solid economic growth forecast.

Zimbabwe’s listed companies trade on the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX), which trade exclusively in United States dollars.

In their financials for the year ending December 31, 2024, the companies said they will prioritise cost containment and operational efficiencies while pursuing revenue growth initiatives.

Construction firm Masimba Holdings said the Government’s economic stabilisation efforts may lead to improved investor confidence, facilitating public and private sector projects.

The company said infrastructure development remains a priority, supported by both governmental initiatives and foreign investment.

“Overall, while opportunities for growth exist, careful navigation of risks will be essential for the sustainability and success of the construction sector.

“The group projects growth in turnover and profitability in 2025, supported by a strong order book and diversification strategies in the infrastructure development space,” said group chairman Mr Gregory Sebborn in the statement of the financials.

He noted that the contracting order book remained robust, particularly in the roads sub-sector. Mr Sebborn said limited liquidity availability in the market hampered effective execution, leading to cash flow challenges and an increasing debtors’ book.

The Government projected a six percent economic growth for 2025, a significant rebound from the two percent achieved in 2024, driven by anticipated improvements in agricultural output and power generation.

Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, is also optimistic about the country’s economic prospects, saying the country can capitalise on emerging energy minerals to sustain economic momentum.

Prof Ncube also highlighted the economy’s positive trajectory will ride on the local currency, Zimbabwe Gold (ZWG), as a key stabilising factor while emphasising the importance of maintaining a tight monetary stance, which has yielded positive results in supporting the value of ZWG and ensuring fiscal discipline with controlled budget deficits.

Diversified group Innscor Africa said attainment of critical volume mass is central to the group’s ability to unlock operating efficiencies and economies of scale.

The group said another critical aspect of overall business performance is the ability to efficiently manage both the bill of materials and operating expenditure lines.

Improvements have been made in both these areas, but increased emphasis will be directed towards further optimising these lines in the period ahead.

At group level, revenue increased by 11,5 percent from US$480,41 million to US$535,79 million. The group ended the interim period on December 31, 2024, with a profit of US$33,44 million, and remained in a healthy cash position for the period.

Stock broking firm IH Securities said, despite expectations of constrained bottom-of-the-period liquidity from the drought, Innscor volumes remained strong in the

first-half with a focus largely on protecting and optimising critical consumer price points in response to VAT regulations.

“From the improvements in rainfall, the expectation is of a mild uptick in consumer liquidity in the 4Q25, giving room for further growth of volumes,” IH said.

It said the raw material pipeline, post the summer crop harvest, is expected to be more localised, with the group having planted 6 700 hectares of cereals in the summer cropping season and a further 6 700 hectares planned for winter wheat.

“While the widespread capital programme has largely wound down, outstanding projects currently underway include a new fully automated bakery production line in Harare as well as upgrades to the Aspindale Stockfeed plant.
“Forward-looking, the group expects upside from efficiencies from the recently installed factory capacity with a focus on ensuring the requisite returns on investment are reached,” IH said.

Dairibord Holdings achieved a consolidated volume growth of 10 percent in the year under review, driven by strong performance in the liquid milks and foods categories, though constrained by a marginal one percent growth in beverages.

The company said the liquid milk’s 20 percent year-over-year growth was due to an increased raw milk supply, with notable market share gains across Chimombe, Steri and Lacto.

Food sales volume rose 47 percent, led by Yummy yoghurt and ice cream, while improved product availability bolstered Rabroy Tomato Sauce sales.

Beverages realised only one percent growth, impacted by subdued Pfuko Maheu performance due to pricing challenges from the sugar tax and VAT adjustments.

USD sales volume rose to 83 percent of total volume, up from 79 percent in the corresponding prior-year period, while exports grew by 13 per cent year over year, contributing eight percent to total sales revenue.

Group chairman Mr Jonathan Sachikonye said community development remains a priority, with a particular focus on empowering small-scale farmers who are integral to the group’s supply chain.

He said the group had placed strong emphasis on regional expansion through export growth and the toll manufacturing model in South Africa to diversify revenue streams and increase foreign currency earnings.

Mr Sachikonye said to improve liquidity, the group was implementing measures to accelerate inventory turnover, shortening the cash operating cycle and tightening its credit risk management practices to reduce the risk of customer default.

CBZ Holdings said Zimbabwe’s economic growth will be supported by a strong recovery in agriculture, bolstered by improved rainfall during the 2024/25 season, as well as expansion in mining and power generation.

It said these factors are expected to enhance productivity and stimulate broader economic activity.

“In that regard, the group remains well-positioned to capitalise on both local and regional emerging opportunities through driving financial innovation to create sustainable long-term value,” it said.

The group said it continues to trade positively, delivering a strong financial performance for the year-ended December 31, 2024, achieving a profit after tax of ZiG168,05 million for the year.

CBZ said its subsidiaries’ diversity was critical to ensure clients are well catered for in meeting their financial services needs, allowing it to play a key financial intermediation role in the economy.

The Zimbabwe National Chamber of Commerce (ZNCC), earlier in the year, expressed optimism regarding medium-to-long-term macro-economic stability and business prospects in 2025.

However, the chamber said it continued to press for a reduction in electricity tariffs, which have become a major cost burden for businesses across various sectors.

In addition, the chamber is calling for a comprehensive review of the Intermediated Money Transfer Tax (IMTT), arguing that the current rate is excessive and hinders business transactions.

Furthermore, ZNCC is advocating a downward review of corporate taxes to enhance business competitiveness, encourage investment, and establish a market-determined exchange rate regime.

“The measures are crucial for alleviating the financial pressures faced by businesses and fostering a more conducive environment for economic growth and development,” said ZNCC president Mr Tapiwa Karoro.

Financial economist Mr Malone Gwadu said cost containment, innovation, and adaptability to current market and economic realities remained critical cornerstones for any company’s resilience and medium to long-term growth and sustainability.

“Traditional business models may not be watertight enough to withstand modern-day market trends of cut-throat competition. Revenue-enhancing strategies such as diversifying and backward integration to capture previous costs as revenue are also another survival strategy for companies to look into,” he said.-chroncile