SOME listed companies plan to leverage opportunities from the projected 6 percent economic growth this year to consolidate their operations for sustained growth and profitability.
Zimbabwe’s listed companies trade on the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX).
The VFEX trades exclusively in United States dollars.
In their interim and year-end financials for the period ending December 31, 2024, the firms said they will prioritise cost containment and operational efficiencies, while pursuing revenue growth initiatives.
Navigating risks
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 Government 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,” said group chairperson Mr Gregory Serbon in a statement accompany the company’s financials.
“The group projects growth in turnover and profitability in 2025, supported by a strong order book and diversification strategies in the infrastructure development space.”
Masimba’s order book, particularly in the roads sector, remains robust.
However, a lack of liquidity within the market hampered effective execution, leading to cash flow challenges and an increasing debtors’ book.
The Government projects 6 percent economic growth for 2025, a significant increase from the 2 percent in the El Niño-affected 2024, driven by anticipated improvements in agricultural output and power generation.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube believes the country can capitalise on emerging energy minerals such as lithium to spur economic growth.
The economy’s positive trajectory will ride on the stability of the local currency, Zimbabwe Gold (ZiG).
Diversified group Innscor Africa said the attainment of critical volume mass is central to the organisation’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 operating expenditure lines.
Overall revenue for the group in the six-month period ending December 31, 2024 rose 11,5 percent from US$480,4 million to US$535,7 million.
Profit for the period stood at US$33,4 million.
Stockbroking and equities research firm IH Securities said, despite liquidity challenges caused by drought, Innscor volumes remained strong.
“From the improvements in rainfall, the expectation is of a mild uptick in consumer liquidity in the fourth quarter of 2025, giving room for further growth of volumes,” IH Securities said.
It also said the raw material pipeline after 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.
“Whilst 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 Securities added.
Export growth, toll manufacturing
Dairibord Holdings achieved a consolidated volume growth of 10 percent in the year ended December 31, 2024 driven by strong performance in the liquid milks and foods categories, though constrained by a marginal 1 percent growth in beverages.
Liquid milks grew 20 percent year-over-year growth due to increased raw milk supply, with notable market share gains across Chimombe, Steri and Lacto.
Food sales volumes rose by 47 percent, led by Yummy yoghurt and ice cream, while improved product availability bolstered Rabroy Tomato Sauce sales.
Beverages realised only 1 percent growth, impacted by the subdued Pfuko maheu performance due to pricing challenges from the sugar tax and VAT adjustments.
The US dollar sales volumes rose to 83 percent of total volume, up from 79 percent in the corresponding prior-year period, while exports grew by 13 percent year-over-year, contributing 8 percent to total sales revenue.
Group chairperson Mr Jonathan Sachikonye said the company had a particular focus on empowering small-scale farmers, who are integral to the supply chain.
Strong emphasis is also being placed on regional expansion through export growth and the toll manufacturing model in South Africa to diversify revenue streams and increase foreign currency earnings.
To improve liquidity, Dairibord is implementing measures to accelerate inventory turnover, shortening the cash operating cycle and tightening its credit risk management practices to reduce the threat of customer default.
Agriculture boost
CBZ Holdings said Zimbabwe’s economic growth will be supported by strong recovery in agriculture, bolstered by improved rainfall during the 2024/2025 season, as well as expansion in mining and power generation.
“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 achieved a net profit of ZiG168,05 million for the year ended December 31, 2024.
The Zimbabwe National Chamber of Commerce (ZNCC) is upbeat about this year’s economic prospects.
It, however, continues to push for a reduction in electricity tariffs, which it says have become a major cost burden for business, as well as a review of the Intermediated Money Transfer Tax.
Further, ZNCC is advocating a downward review of corporate tax to enhance business competitiveness and encourage investment.
“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.
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 cutthroat 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. – Heraldonline
