· Notice to Shareholders: Simbisa; Khaya Cement; Axia
· Financial Results: Fidelity; Masimba; Dairibord; ZHL
Harare - Notice to Shareholders: Simbisa; Khaya Cement; Axia
Simbisa Brands Limited announced that due to various factors that include the change in the Group’s functional currency for the Zimbabwe operations from ZWL to USD, effective 01 July 2022, there has been a delay in the publication of its Audited Financial Statements for the financial year ended 30 June, 2023, which were due for release on or before 30 September, 2023. The results will now be published on or before 31st October 2023 following the extension granted to the Company by the Victoria Falls Stock Exchange (VFEX).
Khaya Cement Limited (formerly Lafarge Cement Zimbabwe Limited) also announced a delay in the publication of its financial results for the half-year ended 30 June 2023. The financial results which were due to be published on or before 30 September 2023 will now be published on or before 30 October 2023 following the granting of an extension by the Zimbabwe Stock Exchange (ZSE).
Due to a change in the Group’s functional and reporting currency from ZWL to USD which caused a delay in finalization of an external audit, Axia Corporation Limited announced a delay in the publication of its financial results for the year ended 30 June, 2023. The results were due for release on or before 30 September, 2023, and will now be published on or before 30 October, 2023 following the extension granted by VFEX to the Company.
Financial Results: Fidelity; Masimba; Dairibord; ZHL
In the half-year ended 30 June 2023, Fidelity Life Assurance of Zimbabwe Limited recorded a 163% growth in inflation adjusted insurance contract revenue from ZWL1.7 billion in the prior year to ZWL4.4 billion. The growth in revenue was attributed to a significant increase in new policies written and an increase in US$ denominated sales. The Group registered a foreign currency contribution of 77% to aggregate revenue, up from 25% in the corresponding period last year. However, due to higher than insurance revenue growth in insurance service costs on the back of inflationary pressures, Fidelity succumbed to a negative insurance service result of ZWL8.7 billion. In inflation adjusted terms, the Group boasted of a profit after tax of ZWL45.4 billion, 123% up against prior year level owing to a strong growth in insurance contract revenue and fair value gains in investment properties.
Masimba Holdings Limited posted a 137% increase in inflation adjusted revenue to ZWL113 billion in the 6-months to 30 June 2023. The growth was mainly attributed to a diversified order book in the roads and earthworks, mining and housing infrastructure sectors. The Group said the proportion of US$ revenues in the period improved to 71%, from 55% in the comparable period last year. Masimba reported a 124% surge in profit before tax to ZWL59 billion, 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 closed the period with sustainable debt levels, with an aggregate of ZWL1 billion, down from ZWL1.3 billion in the prior year, and consists of a foreign currency denominated loan of US$440,000. The Group also alluded that a total of ZWL5 billion was incurred as capital expenditure to support the firm order book, and this equates to US$3.6 million.
Dairibord Holdings achieved a 16% increase in raw milk volumes to 14.226 million litres in the half-year to 30 June 2023, which accounted for 34% of total raw milk of 42.078 million litres received by processors in Zimbabwe. Dairibord’s total sales volumes rose by 9% against corresponding period in the prior year. The Group said Liquid Milks’ sales volumes recorded a 6% growth largely spurred by a 32% growth in Chimombe volumes while beverages recorded a notable 16% uptick in sales volumes, fueled by capital investments made in this revenue segment which improved production throughput and sales. Owing to inconsistent supply of quality inputs affecting peanut butter and salad cream, and depressed demand for ice creams, a decline of -23% was recorded in foods volumes. As the overall currency mix in the economy shifted in favour of the US$, 64% of Dairibord’s volumes sold during the period were in foreign currency, which was a significant improvement from the 39% recorded in the prior comparative period. The Group achieved a 56% growth in inflation adjusted revenue to ZWL306.05 billion, attributed to a strong volumes’ performance. The operating profit margin for the period was 20% up from 9% in prior period. On the downside, the Group succumbed to significant foreign exchange losses of ZWL27.49 billion, arising from foreign currency denominated obligations. The foreign exchange losses weighed down the performance of the business to churn out a loss for the year of ZWL$4.65billion.
Zimre Holdings Limited posted a 42% surge in insurance contract revenue to ZWL34.2 billion in the 6-months to 30 June 2023. The growth emanated from the reinsurance operations along with the life and pensions business which contributed 62% and 24% respectively to the total premiums written during the period. ZHL also alluded that the growth in insurance revenue was propelled by the increase in the USD revenue from the local business units and new business acquisitions from regional operations. On the downside, total income decreased by 25% from ZWL141.2 billion to ZWL105.8 billion in inflation-adjusted terms. The property business registered a 172% growth in rental income while a favourable claims ratio for the reinsurance operations of 35% was achieved. However, the Group’s insurance service result was negative given an increase in direct insurance service expenses which grew by 17% and 412% respectively on account of an increase in directly attributable expenses. Due to foreign exchange gains on US$ denominated monetary assets and revaluation gains on investment properties, ZHL achieved a 54% increase in profit for the period to ZWL167.6 billion.
Equity Axis News
