Zim­pa­pers strate­gises for busi­ness growth

Chronicle (Zimbabwe) - - Business Chronicle - Busi­ness Reporter

DOM­I­NANT and di­ver­si­fied me­dia group, Zim­pa­pers (1980) Limited, is pur­su­ing and ap­ply­ing its re­sources to strate­gies that en­able the com­pany to take ad­van­tage of emerg­ing op­por­tu­ni­ties to grow the busi­ness, board chair­man Mr Delma Lu­pepe has said.

The giant firm has main­tained sta­ble op­er­a­tions across its di­vi­sions de­spite the dif­fi­cult eco­nomic en­vi­ron­ment and is fo­cused on con­sol­i­dat­ing its foothold to­wards in­creased prof­itabil­ity.

In a state­ment ac­com­pa­ny­ing the group’s unau­dited fi­nan­cial re­sults for the half year ended June 30, 2016, Mr Lu­pepe said the com­pany was pos­i­tive that the turn­around strate­gies be­ing im­ple­mented and the firm’s com­pet­i­tive ad­van­tage en­sures se­cu­rity and fu­ture ex­is­tence.

He re­ported that the over­all group rev­enue for the pe­riod was $19 mil­lion, five per­cent less when com­pared to the same pe­riod last year.

“The de­crease in rev­enue was mainly at­trib­ut­able to the gen­eral eco­nomic en­vi­ron­ment slow­down char­ac­terised by con­strained mar­ket liq­uid­ity and de­clin­ing dis­pos­able in­comes,” said Mr Lu­pepe.

“In line with the recorded rev­enue re­duc­tion, gross profit de­clined to $12,7 mil­lion from $13,6 mil­lion at­tained last year. The gross profit mar­gin at 67 per­cent re­mained largely in line with what was achieved in the pre­vi­ous year.”

Rev­enue for the news­pa­per div i s i on was nine per­cent ad­verse to the same pe­riod last year. How­ever, the di­vi­sion sus­tained a $1.4 mil­lion op­er­at­ing profit be­fore in­ter­est and ex­change losses that were recorded in the prior year. The com­mer­cial print­ing di­vi­sion recorded a 19 per­cent growth in rev­enue to $1.8 mil­lion com­pared to $1.5 mil­lion for the prior year. The growth was driven by fur­ther re­tool­ing of the down­stream op­er­a­tions that was done in the first half of 2016. The broad­cast­ing di­vi­sion’s rev­enue grew 13 per­cent from $1,7 mil­lion to $1.9 mil­lion on the back of ag­gres­sive brand aware­ness cam­paigns. The pe­riod un­der re­view saw com­mis­sion­ing of an­other sta­tion for the Zim­pa­pers’ sta­ble, Di­a­mond FM, in Mutare. The di­vi­sion recorded an op­er­at­ing profit be­fore in­ter­est and tax of $0.2 mil­lion. The board chair said gross profit mar­gin re­mained un­der pres­sure as clients were ag­gres­sive on re­quests for dis­counts in view of the ob­tain­ing eco­nomic en­vi­ron­ment. He said the com­pany re­mains fo­cused on cost con­trol on the back of de­clin­ing rev­enues. “To this end op­er­at­ing ex­penses at $11,2 mil­lion were 10 per­cent favourable to $12,6 mil­lion recorded last year. Con­se­quently, op­er­at­ing profit be­fore in­ter­est and ex­change losses of $1.7 mil­lion was recorded,” said Mr Lu­pepe. Al­though the com­pany is still in a net li­a­bil­ity po­si­tion of $16,9 mil­lion, he said the board and man­age­ment were work­ing on strate­gies to ad­dress the is­sue. The board chair said the com­pany re­mains com­mit­ted to ser­vic­ing its debts as they fall due where pos­si­ble and en­gage ser­vice providers.

Mr Delma Lu­pepe

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