Masimba’s revenue up 50pc in 5 months to May 2024

Business Reporter

Masimba delivered a strong financial performance during the five months ending May 2024, CEO Fungai Matahwa told the company’s AGM on Friday last week

According to Mr Matahwa revenue jumped nearly 50 percent to US$24,7 million, compared to US$16,5 million in the same period last year.

This growth is credited to a robust order book, Mr Matahwa said.

He said the company boasts a healthy US$253 million order book as of May 31, 2024, with Government projects making up a significant portion (74 percent). Notably, over 60 percent of the order book value is denominated in US dollars,Mr Matahwa noted.

He said roads and earthworks projects were the key revenue driver, contributing nearly 60 percent while mining and housing infrastructure followed at 31 percent and 7 percent respectively.

A large portion of the roads and earthworks revenue comes from Government-funded projects, with consistent payment performance, according to Mr Matahwa.

Masimba maintained a healthy gross profit margin of 20 percent.

While there were no major capital expenditures recently, the company has approved US$3 million in investments aimed at improving efficiency and incorporating specialised processes.

Shareholders’ equity also improved to US$26,6 million as of May 31, 2024, compared to US$24,2 million at the end of December 2023. This reflects the company’s positive performance.

Outlook

Going forward Mr Matahwa anticipates a potentially challenging outlook due to persistent inflation, distortions in foreign currency pricing, and potential delays in Government project payments.

These delays could be caused by El Niño-related government funding allocations, potentially impacting growth and profitability.

The company’s strategy moving forward will focus on streamlining operations, controlling costs, and maximising shareholder value.

Mr Matahwa also emphasised the ongoing progress of the company’s plan to sell developed land holdings in Bulawayo and Shurugwi, aiming to generate additional value for shareholders.