A number of Zimbabwe Stock Exchange-listed companies have released their third-quarter trading updates, revealing mixed feelings about the country’s prospects for the current fiscal year.
Having followed the trading updates, but also considering the publications thus far, many have indicated that the operating environment will remain difficult.However, the listed counters have acknowledged the stability that they enjoyed before the uptick in exchange rate movement.
This comes as the gap between the official and parallel market rates continues to widen, exerting pressure on margins.
For the third quarter ended 31 December 2022, the country’s biggest seed maker, SeedCo Limited, said inflation, foreign exchange, and interest rate risks remained significant in Zimbabwe.
Afdis weighed in, expressing concern about the challenging operating environment. In its third quarter ended 31 December 2022, the company expects the trading environment to remain “unstable”. However, the firm has taken steps to take advantage of the possibilities that are present in order to maintain market share, revenue, and profitability growth.
The case was the same with Delta Corporation, which states that although steady, the operating climate in Zimbabwe is nevertheless difficult as the nation prepares for the general elections later this year.
There are fears that the 2023 elections might result in policy disruptions and continued local currency depreciation against the US dollar.
Delta also raised issues to do with policy inconsistencies, polarised political environment and uncertainties posed by the Covid-19 pandemic.
Chibuku is the most popular opaque beer brewed in Zimbabwe.
Buffalo Brewing Company was poised to challenge Delta Beverages’ long-standing monopoly in the beverage business in Zimbabwe under pressure. At its recent analyst briefing, the company said, however, that “competition is good for the business”.
BAT, the country’s biggest cigarette maker, expects trading conditions to remain challenging for the remainder of 2022, mainly as a result of macro-economic variables.
For the third quarter ended 30 November 2022, EcoCash indicated that it was dedicated to providing value to all of its stakeholders, despite the fact that the business environment was still difficult. The fintech giant believes that it can unlock opportunities, provide necessary digital solutions and thereby improve its financial performance by leveraging digital and financial technologies.
Policymakers vowed to maintain a tough monetary stance until there was stability in the economy – Harare