Business / Companies
Zimre's first quarter operating profit grows to $1.9 million
25 Jun 2013 at 12:46hrs | Views
Zimre Holdings Limited recorded 38% growth in operating profit in the first quarter as a result of improved collections and cost control initiatives implemented by the firm, group CEO Albert Nduna told the AGM today
Nduna told the Company's AGM this afternoon, that cost control initiatives across the group and improved collections resulting in comprehensive income growing by 553% to $1.7 million.
Chairman Ben Kumalo said group performance is being adversely affected by the prudent provisions of bad debt and the negative effects of the devaluation of the Malawian Kwacha against the major currencies resulting in significant exchange losses which led Nduna to say the focus for the Group this year is to write profitable and collectable business to minimize provisions for bad debt.
"The group has adopted a deliberate operational strategy which entails writing quality business and reducing exposure on high risk business to improve liquidity and profitability," said Kumalo.
"As a result the group's GPI went down 24% against the same period last year."
Nduna told the Company's AGM this afternoon, that cost control initiatives across the group and improved collections resulting in comprehensive income growing by 553% to $1.7 million.
Chairman Ben Kumalo said group performance is being adversely affected by the prudent provisions of bad debt and the negative effects of the devaluation of the Malawian Kwacha against the major currencies resulting in significant exchange losses which led Nduna to say the focus for the Group this year is to write profitable and collectable business to minimize provisions for bad debt.
"The group has adopted a deliberate operational strategy which entails writing quality business and reducing exposure on high risk business to improve liquidity and profitability," said Kumalo.
"As a result the group's GPI went down 24% against the same period last year."
Source - newswires
