·         FY Financial Results: First Mutual Properties, Turnall Holdings Ltd, TSL Limited, NMB Holdings Limited, Fidelity Life Assurance & Zimbabwe Newspapers Limited

Financial Results for the year ended 31 December, 2022

First Mutual Properties

Harare - FMP recorded a 42% increase in inflation adjusted revenue to ZWL2.9 billion in the full year to 31 December, 2022, owing to the repricing of rentals as well as a relatively good occupancy level of 85.5%. However, the net property income after administration costs fell to ZWL140.5 million, from ZWL589.4 million recorded in 2021. On the upside, foreign to local currency rental mix stood at 70% to 30%, which posits the company in a better position from inflation risk and enables funding of capital expenditures. Due to constrained liquidity in the economy amid a contractionary monetary policy, collections reduced from 82% in 2021 to 72% in the year under review.

Turnall Holdings Ltd

In the year under review, Turnall posted a turnover of ZWL8.4 billion in inflation adjusted terms, which reflects a growth of 16% from ZWL7.25 billion in 2021. Despite a decrease in sales volumes, the growth in revenue was attributed to the focus on high value but low tonnage products, which yielded more value from low volumes. On the downside, the Group recorded a 35% surge in cost of goods sold, against a 16% increase in revenue, which resulted in a decline in gross profit margin from 41% in the prior year to 31% in the year under review. Operating costs to sales ratio closed at 52%, 1-fold up from 23% in 2021 in inflation adjusted terms due to substantial non-recurring employee terminal benefits which were provided for during the year. Subsequently, Turnall posted an operating loss of ZWL630.7 million in the year under review.

TSL Limited

Due to a strong volume performance, TSL recorded a 26% growth in inflation adjusted revenue in the year under review. The Group used the official exchange rate to convert the US$ earnings to local currency. However, operating expenses significantly increased due to multiple exchange rates being implemented by various local suppliers. Resultantly, operating profit before fair value adjustments declined by -26% from prior year record. The monetary policy changes during the fiscal year saw a spike in TSL’s finance cost of 162% compared to prior year levels. TSL said Tobacco Sales Floor handled 23.1 mkg of tobacco in the year on the back of a smaller crop and a shrinking independent grown crop against 24.3 mkg in prior year, a 5% decline, while Propak hessian volumes were 15% below prior year owing to a reduction in the independent auction segment. The Group also recorded a 71% growth in Avis’ rental days against prior year levels as lockdown restrictions eased resulting in increased international arrivals.

NMB Holdings Limited

In the full year to 31 December 2022, NMB recorded an operating income of ZWL41.9 billion, up from ZWL23.9 billion in 2021. The growth was attributed to a sustained increase in transaction volumes and values. Profit after tax, at ZWL12 billion, was 69% ahead of prior year’s record in inflation adjusted terms. This is despite a 57% increase in costs to ZWL19 billion. NMB said it closed the year with total assets of ZWL135.3 billion, up 34% from ZWL 100.9 billion as at 31 December 2021, funded by strong growth in customer deposits and new credit lines signed during the year. Customer deposits increased by 48% reflecting the banking subsidiary’s efforts in deepening existing liability relationships while acquiring new relationships. Loans and advances stood at ZWL 46.3 billion as at 31 December 2022. The banking subsidiary maintained a high-quality loan book, closing the year with an NPL ratio of 1.09%.

Fidelity Life Assurance

Fidelity reported a comprehensive income of ZWL2,616.9 million in the year under review in inflation adjusted terms. Total income rose by 45% due to core business net premium written and investment income which grew by 230% and 475% in that order. The growth in net premium written is premised on regular reviews of recurring premiums, product modifications, new market segments and leaning towards generating USD revenue to keep up with the volatile economic environment, while the gains on investment property show the reflective nature of this asset class in response to the macroeconomic sphere.

Zimbabwe Newspapers Limited

In the full year to 31 December, 2022, Zimpapers recorded a staggering 61% growth in revenue to ZWL18.6 billion. The Company said recovery of the printed newspapers business, which had taken a knock during the Covid-19 era, is on course, whilst the digital platforms are enjoying remarkable     growth in audiences. However, inflationary pressures during the year and an unabated increase in the cost of imported raw materials led to a decline in gross profit margin from 66% in 2021 to 63% in the year under review. On the upside, the improved overheads management from 58% to 54%, saw an improved EBIT margin from 9% in the prior year to 11% in the period under review. Due to the effects of the new contractionary monetary policy during the year, Zimpapers saw a rise in finance costs and this weighed down on profit before tax which amounted to ZWL384.7 million, down from ZWL494.9 million recorded in the prior year.

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