eBusiness Weekly
Business Writer
Mashonaland Holdings swung back to full-year profit on Friday and announced it will continue to focus on boosting operational effectiveness and portfolio diversification.
The group saw an annual inflation-adjusted profit of $17,2 billion, compared to a loss of $4,8 billion in prior year.
“The improved performance was due to the improved operating profitability and 39 percent capital gain recorded on investment properties,” group chairperson, Grace Bema said in a statement accompanying the financials for the year ended December 31, 2022.
The yearly revenue rose from $1,9 billion to $3,8 billion, an increase of 98 percent.
“The revenue growth was mainly driven by revenue earned from the Mashview Gardens cluster housing development amounting to $1,2 billion, which contributed 30 percent of the revenue performance.”
Despite the comparable period being longer due to the change in financial year end in 2021, rental income climbed by 34 percent to $2,6 billion, which also helped to improve revenue performance.
“The increase in rental income was driven in part by periodic rent reviews to align rentals with obtaining market conditions and also improved occupancy which grew from 81 percent in 2021 to 87 percent in December 2022,” Bema said.
From $1 billion to $3,5 billion, operating profit before fair value adjustments increased by 243 percent.
“The increase in operating profit was partly due to foreign exchange gains of $3 billion which were realised on foreinn currency balances on hand following disposal of Charter House. Consequently, the Group’s operating profit margin increased from 53 percent to 93 percent in 2022.”
Bema said the group has not been spared from the effects of currency distortions in the market.
“The market continues to witness marked disparities in the pricing of goods and services depending on the currency of settlement, with an increased number of transactions being settled in foreign currency,” Bema said.
“These market dynamics present cost-push pressures which require the Group to continue to focusing on increasing efficiencies while pursuing Its portfolio diversification strategy.”
It declared a final dividend of $212,40 million.
A component in the amount of $200,000 will be paid in foreign currency.
