- Annual revenue came in at ZW$2.8 billion
- Group profit scaled up 107%
Harare – Insurance services provider and mega lessor Zimre Holdings Limited, has reported an 11% increase in inflation-adjusted revenue for the fiscal year ended 31 December 2020 driven by strong performances seen in the Botswana and Mozambique units.
In monetary terms, the group’s total income for the year was ZW$2.8 billion compared to ZW$2.5 billion recorded in the prior year.
In a statement accompanying the group’s results, ZIMRE board chairman, Benjamin Khumalo said the revenue growth was a result of a combination of factors which include a recovery in the Zimbabwe operations and strong sales and revenue performances in the regional operations.
“The increase was mainly driven by the strong top-line growth in premium income in Mozambique and Botswana as the units consolidated their respective market positions…”
“The contribution mix is underpinned by the clawback in the Zimbabwean operations and the continued beneficial hedging effects of the regional operations,” he stated.
Mr Khumalo further said that the company benefited from rental reviews and property revaluations.
“The growth in rental income with the coming on stream of property space with high rental yield and the upward reviews of rentals as well as property revaluation gains following the change of functional currency also played a key role,” he added.
Consequently, the group’s profit for the year scaled up by 107% from the ZW$0.5 billion realized in 2019 to ZW$0.9 billion in the period under review.
Going forward, the company says it expects the rest of the year to be difficult for business as a result of new waves of COVID-19 infections but however, they are optimistic that vaccination campaigns and the economic recovery expected on the back of good rains this season were going to be a mitigating factor.
“2021 is expected to be another challenging year given the worldwide resurgence of COVID-19 cases and the emergence of new variants. The rollout of vaccines is expected to assist in containing the spread and to mitigate the negative effects of the virus on economic activity.”
“The above normal rainfall season in the region is expected to boost the recovery of the agricultural sector, downstream industries, and food security in support of overall economic growth.”
Zimre Holdings Limited (ZHL) and sister company Zimre Property Investments (ZPI) consolidated last year into one group after the former acquired the latter.
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