On the ZSE, we have been observing an uptick in share prices and we are of the view this is as a result of investors fleeing to inflation hedging assets. Despite occasional weakness due to profit taking, we expect the upward trend in the market capitalization to continue to year end ...
The operating environment in the second half of the Axia financial year (Jan-Jun) was characterised by COVID-19 induced restrictions, while y/y inflation continued to decline giving rise to a relatively stable local currency. With the stabilising currency, TV Sales & Home re-introduced credit sales allowing the company to defend market share and grow volumes (debtors’ book grew 306% y/y). TV Sales & Home volumes were up 35%; sales were also driven by growth in the store network. Equity accounted earnings mainly comprised of earnings from Restapedic Bedding grew 239% y/y. DGA - Zimbabwe increased sales of locally produced products as substitutes for some imported products which helped defend volumes (sales up +3%) while Transerv had ...
FY21 provided some respite for businesses as inflation moderated down to the double digits for the first time in almost two years. The relatively stable operating environment allowed for increased focus on enhancing product portfolio and optimising the business models in the respective units for National Foods rather than preserving value on the Statement of Financial Position. Aggregate volumes for the group grew 15% y/y to 525,430 tonnes underpinned by recovering consumer spend on the back of a good harvest. Volumes in the flour division increased by 43%, buoyed by a strong performance in the pre-pack segment. Maize meal volumes remained ...
FY21 represented a noticeable shift in the operating environment at large registering subdued inflation figures, more permissive trading hours in the face of COVID-19 and increased bottom of the pyramid liquidity from an above average summer crop harvest season. The bulk of Innscor’s operating units responded positively to these developments gaining double digit volumes growth from redactions experienced last year . For the Mill-bake segment, the Bakery division rebounded 36% y/y enabled by a reliable and consistent supply of key raw materials and cost stability. Volumes at National Foods grew 15% to 525,430mt weighed down by performance in the maize category. Profeeds recorded a 31% increase in feed volumes, as well as a 47% uptick in day-old chick volumes. In the Protein segment ...
The Group’s financial results were resilient despite a challenging operating environment characterized by restrictions on seating capacity, reduced operating hours and overall depressed economic activity. The direct impact of the pandemic was felt in all the Group’s markets with Zimbabwe losing 33% of its trading hours while Kenya and the rest of the markets lost 28% and 14% respectively. During the period under review, the Zambian Kwacha depreciated by 25% y/y against the US Dollar, while in Zimbabwe continued foreign exchange shortages and multiple exchange rates created further operating challenges through the distortionary impact on suppliers’ and service providers’ pricing mechanisms. Regardless, Simbisa's customer count increased by 6% compared to the same period prior year owing to increased delivery sales contribution, promotional activities, value offerings and new store rollouts. Food delivery volumes increased by ...
Month on month inflation trended upwards for the quarter possibly in response to increased government spend on agricultural inputs. The parallel market was considerably volatile gaining 27% over the quarter, the highest quarterly gain since 2Q20. The local currency gradually increased 8% in the first 3 quarters of the year on the back of an increase in money supply. Consequently, the parallel market premium closed 3Q21 at 98% from 59% in 2Q21. On the Zimbabwe Stock Exchange (ZSE), the All Share Index has been on an upward trend, outperforming 2Q21. The ZSE Market Cap is up 246% YTD in real terms while value traded seems to be flat over the period under review.
