ZHL Q1 profits up 48%

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General Beltings Holding’s revenue in the first quarter was 20% up on prior comparable period while overall total volume was static at 365 tonnes. Group managing director Willbroad Tsuroh in a trading update at the company’s annual general meeting said the company remains in a loss making position because of a 38% reduction in prices undertaken in a bid to capture market share which is now 24%. – Financial Express (Online)

The egg-producing industry tumbled by 23% to 3.6 mln eggs in the first quarter of 2017 largely due to disinvestment by small-scale producers, an industry official has said. Zimbabwe Poultry Association chairperson Solomon Zawe said egg production suffered tremendously in the first quarter of 2017 as small-scale producers disinvested. He said production of layer hatching eggs had declined by 18%, while imports (also being 10% of local production) had declined by 8% and total hatching eggs had declined by 18%. But chick production had shown a marginal increase of 2%, while chick price had firmed from $114 per 100 chicks in September 2016 to $130 in March 2017, he noted  – NewsDay, 29 June 2017

Liquefied petroleum gas imports jumped 67% between January and June this year, indicating growth in the use of alternative heating energy compared to electricity, statistics from Zimbabwe Energy Regulatory Authority show. Zera chief executive officer Engineer Gloria Magombo said LPG imports increased to 2.5 mln kilograms in June from 1.5 mln kg in January. – The Herald, 29 June 2017

Frankfurt Stock Exchange listed logistics outfit, DHL Express says it will next month deploy a bigger cargo aircraft into Harare in response to stronger demand in Zimbabwe, where opportunities have been boosted by plans to establish Special Economic Zones. DHL vice president for operations in Sub Saharan Africa, Anthony Beckley, disclosed that the world’s largest logistics firm would be operating the ATR72 aircraft into Harare from July 1. The ATR72 will replace the much smaller ATR42 jetliner, which DHL has been using for cross border cargo in the country, but was now battling to cope with higher demand. – Fingaz, 29 June 2017

Zimre Holdings Limited, profits for the first quarter to April was up 48% from $920,000 in 2016 to $1, 35 million in 2017 on the back of prudent selective underwriting and continued recovery of reinsurance concern, Baobab Re. In a trading update at the AGM, Managing Director, Stanley Kudenga noted with concern that the improved profits were achieved in the face of a 13% decline in total revenue to $6, 52 million compared to the same period last year. The decline was mainly attributed to a soft domestic insurance market where, reinsurance business has taken a tumble in past years while exchange rate losses against the US dollar, mainly the Metical of Mozambique also continued to affect returns. Zimbabwe was the largest contributor to group total revenue at 62% followed by Malawi at 13%, Zambia, 13%, Mozambique, 10% and Botswana at 5 %. Meanwhile Kudenga also shed light on the rebranding exercise and offshore investments into Botswana’s Emeritus International, a holding company that will house the group’s foreign investments to further strengthen ZHL’s regional footprint.“Allow me to elaborate and update you on the exciting developments regarding progress on the establishment of Emeritus International Reinsurance Company. Exchange control approvals for setting up the company were obtained,” Kudenga added.Emeritus International is an offshore company registered in Botswana and operating in the Botswana International Financial Services Centre accredited zone.The group has already approached the Reserve Bank of Zimbabwe (RBZ) on the listing of Emeritus on the Botswana Stock Exchange.The group’s Mozambican operations have received a timely boost as the Zimbabwe Exchange Control Approval has given the nod on the company’s disinvestment from Continental Re, Nigeria and the proceeds to be used to recapitalise the Mozambique Reinsurance Company.Back home, Baobab Re has also been granted an operating license by the Insurance Pensions, Commission (IPEC) thereby allowing the amalgamation of the company’s short term reinsurance and Life & Health Reassurance units. This is aimed at enlarging the reinsurance balance sheet which is core to the business. – Financial Express (Online)

Finance and Economic Development Minister Patrick Chinamasa has said government has started investigations to identify individuals and companies involved in externalising foreign currency from Zimbabwe and in turn fuelling the current cash crisis. Zimbabwe is battling an acute cash shortage attributed to several factors chiefly externalisation and low exports. The country’s monetary authorities have introduced several measures to curb the cash shortage including closely monitoring the way some companies handle their cash following concerns that big firms, particularly retail businesses were not banking their daily takings. Chinamasa said externalisation continued to play a huge part in the cash challenges the country was facing. – The Herald, 29 June 2017

The Securities and Exchange Commission of Zimbabwe is planning to introduce mobile share trading by October this year in a move that could open the capital markets by broader participation. Tafadzwa Chinamo, the chief executive officer of SECZ, disclosed that the commission wants investors to start trading shares from their mobile phones and internet on both the ZSE and Finsec which was licensed last year September as an exchange meant to broaden capital market participation. – Fingaz, 29 June 2017

By |June 29th, 2017|Categories: Headlines|

About the Author:

Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.