ZIMBABWEAN companies are upbeat of future prospects despite looming economic headwinds, with many entities devising strategies on prudent investment and preservation of shareholder value.
RONALD MUCHENJE
The going concern status of firms has come under the spotlight due to the devastating Covid-19 pandemic amid economic uncertainty.
Companies have been reeling under a tough trading environment although there are hopes of improved access to foreign currency through the official forex market.
Nampak Zimbabwe Limited in its financial results for the year ended September 30 2021 said given the continued focus on cost control and margin preservation, the group was well-positioned to address the challenges despite the year ahead forecast to be characterised by strong economic headwinds.
During the period, the company continued to invest in the business where there was growth while exploring new opportunities to improve product offering and quality.
“There was improvement in accessing foreign exchange through the official foreign currency market. The overall demand for packaging was significantly improved this year, compared to previous years. Nampak benefitted from the recovering economy, led by the rebound in agricultural and mineral commodities. Focus remained on cost containment within a difficult trading year,” Nampak said.
Star Africa said going forward, the company will focus on completing the outstanding capital investment projects while continuing to maximise on the benefit of the central bank auction system in securing critical raw materials, spares and machinery.
“The company continues to monitor the Covid-19 situation in the country, where a fourth wave may sweep through in the short-term due to the emergence of the Omicron super-variant. The board views these financial results as a key milestone reached that cements the group’s thrust towards future profitability even in the face of a harsh operating environment such as noted in these six months under review. Sustained improvement in throughput is expected in all the product-lines as the group continues to pursue high levels of operating efficiencies, health and safety standards and maximisation of shareholder value. The board is confident that the gains achieved to date will be sustained. The pronouncements made in the recent National Budget Statement are expected to further stabilise the economy into the second half of the year, fostering a conducive environment for industry to flourish,” the company said In its financial results for the year ended 31 October 2021.
Tobacco Sales Limited (TSL) said there were ongoing plans to expand and improve the group’s infrastructure with construction anticipated to commence at a strategically located warehouse.
This construction of additional warehousing is anticipated to be kick-started during the 2022 financial year.
“The group continues to pursue its “moving agriculture strategy in a difficult operating environment and to invest accordingly to create and reserve shareholder value. The group continues to explore strategic partnerships both locally and regionally to enhance its market presence. The availability of foreign currency and appropriately priced financing will assist in taking advantage of the existing growth opportunities,” noted the group.
