Industry place head bullish here about future
LOCAL business executives are feeling optimistic about the outlook of their companies over the next 12 months and are bullish about economic prospects in the medium to long term, an analysis of recently released financials shows.
Of the eight firms that were analysed by our sister paper Business Weekly, only one — Fidelity Life Assurance — did not mention expansion plans.
Industrial behemoth Innscor, which has interests in many sectors of the economy, is betting on the good rainfall season that has been forecast to provide low-cost raw materials for industry.
Regional and local rainfall forecasts say the country is likely to experience normal to above-normal rains in the forthcoming summer cropping season.
Innscor chair Mr Addington Chinake said the group would continue to “assess and investigate capital projects which will provide long-term business model optimisation and efficiency”.
He said the group would evaluate growth opportunities in both adjacent and new categories in pursuit of its ongoing desire to create value for shareholders, including playing a role in successfully re-building the nation.
Innscor is one of the biggest grain consumers in the country, and efforts to build internal capacity through contract farming, corporate farming, smart partnerships and small-scale capitalisation to supplement the supply of imported primary raw materials will likely have a positive impact on its operations.
“Management of inventory pipelines is one of the key critical success factors for a business of this size and nature, and so working capital and debt financing will continue to receive priority attention,” Mr Chinake said.
Management at National Foods, a unit of Innscor, said “investments into the company’s manufacturing facilities continue on an ongoing basis in an effort to further improve efficiencies and lower costs”.
Axia, which is another subsidiary of Innscor, believes that while trading conditions going into the new financial year remain largely unchanged due to the impact of Covid-19, this will still “present opportunities and the Group will continue to evaluate investment opportunities to preserve and sustain value for all stakeholders”.
Zimplow Holdings — a manufacturer of a diverse range of products for the agriculture, mining and construction sector — remains cautiously optimistic.
Board chair Mr Thomas Chataika believes there are good leads in the construction and mining industry that are worth pursuing.
Zimplow, which recently announced plans to acquire businesses that are in the transport and logistics’ sector, says it will continue to look out for opportunities to expand its reach. First Mutual Properties is optimistic about what the future holds.
“We expect resilient demand off corporate occupiers, as this client group may require larger space in order to embrace non-pharmaceutical Covid-19 protocols,” the property concern said.
Similarly, construction company Masimba currently boasts of a “solid order book”.
Execution of the orders is, however, dependent on the impact of the pandemic on the company’s operations and its business partners.
“Focus will continue on value preservation strategies as guided by its value, growth and governance pillars,” said Masimba board chair Mr Gregory Sebborn.
Dairibord expects the second half of the year to present better prospects and opportunities for business owing to a relatively stable exchange rate and improved availability of foreign currency through the auction system, which is forecast to improve availability of critical raw materials and packaging materials.
However, Fidelity Life Assurance chair Mr Fungayi Ruwende indicated that the company would continue to implement “proactive strategic initiatives” to preserve value for stakeholders.
The group’s strategic initiatives include, among others, revenue protection through careful selection of markets, streamlining distribution channels, deliberate asset preservation efforts by the business through investing in hyperinflation-resilient investment options, unlocking value through balance sheet restructuring activities, re-engineering the operating model of the Malawi business to improve financial and operational performance, including cost containment in line with Covid-19-induced depressed revenue lines.
“As a business, we will continue to be cautious and maintain strategies that are resilient in these tough times. De-risking Zimbabwe through further country diversification remains a key strategic priority for us as soon as regional and international borders open,” Mr Ruwende said. — ebusinessweekly.co.zw
He said the group would evaluate growth opportunities in both adjacent and new categories in pursuit of its ongoing desire to create value for shareholders.
Cautiously optimistic