Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
Food processing giant, National Foods Holdings Limited has advised its shareholders of plans to list on the fast-expanding Victoria Falls Stock Exchange (VFEX).
The firm said its directors have approved the delisting from the Zimbabwe Stock Exchange (ZSE) and immediately list on the VFEX.
In a cautionary statement, National Foods said shareholders would be furnished with more details once all regulatory processes have been finalised.
“The Directors of National Foods Holdings Limited wish to advise all Shareholders and the investing public that the Board has approved the delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange,” reads part of the cautionary statement.
The USD-denominated VFEX is a subsidiary of the ZSE launched in 2020 as an off-shore biased financial services centre as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.
At its inception VFEX began trading with leading seed producer and distributor, SeedCo International Limited with mining giant Caledonia Mining, skins and meat processor — Padenga and Bindura Nickel Corporation coming on board later.
Several firms have recently announced intentions of listing.
Quick restaurants services group — Simbisa Brands is expected to migrate from ZSE to VFEX on December 2. Nedbank Zimbabwe has also indicated its intention to shareholders to list next month.
Financial services group — GetBucks has also indicated plans to migrate to the VFEX from the ZSE.
The platform is seen as a gateway for companies in Zimbabwe, Sadc and the rest of Africa to raise capital in foreign currency and also provide investors to trade in the secondary market in hard currency.
All global companies invested in Zimbabwe can seek listing on VFEX.
The establishment of the VFEX is one of the many initiatives implemented by the Government to stabilise the economy and attract foreign direct investment.
Investors who participate on the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, tax incentives that include five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks.
Meanwhile, in its audited financial results for the year ended 30 June, the group said it is embarking on an exciting period of expansion with entry into a number of new categories as it seeks to value add its portfolio of basic products.
Independent and non-executive chairman, Mr Todd Moyo said the group would be manufacturing products which have been previously imported.
“Many of these products will see the localised manufacture of products which had previously been imported, reducing foreign currency requirements and increasing demand for locally grown produce,” he said.
He added that a cocktail of economic interventions have greatly improved economic stability which have a net effect of recovering consumer spending.
Going forward, the group will continue to focus on ensuring that business models are robust and fit for purpose.
“Particular focus will be placed on volume growth, cost optimisation as well as ensuring that working capital deployed in each unit is appropriate for the economic circumstances,” said Mr Moyo.
Volume for the period increased by eight percent to 569,000 tons when compared to prior year. Revenue for the year increased by 33 percent to $128,4 billion, driven by both volume growth and inflation driven price increases.
Gross profit grew by 84 percent in absolute terms, mainly due to inflationary gains on raw material positions while operational expenditure grew by 37 percent year on year, with correction of some major cost lines occurring in real terms during the year.
Operating profit increased by 301 percent compared to prior year to $14,74 billion, while profit before tax increased by 1 390 percent to $20.4 billion.
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