LEADING research firm Fincent Securities says the Victoria Falls Stock Exchange (VFEX)-listed Simbisa Brands Limited continues to be a standout performer, not only according to its financial indicators but in its strategic initiatives as well.<\/p>\n
It said the company\u2019s 10% revenue growth in Zimbabwe, coupled with a remarkable 31% surge in operating profit, reflected a resilient business model.<\/p>\n
\u201cDespite economic challenges, Simbisa\u2019s ability to enhance purchasing efficiencies and maintain robust margins contributed to a significant 22% increase in adjusted operating profit, reaching US$21,4 million,\u201d Fincent said in its analysis of the company\u2019s trading update for the half year ended December 31, 2023.<\/p>\n
\u201cSimbisa\u2019s commitment to shareholder value is evident through its consistent delivery of dividends. This aligns with the characteristics of a lucrative blue-chip, emphasising the company\u2019s dedication to generating free cash flows for shareholder benefits.\u201d<\/p>\n
Simbisa reported a 7% surge in revenue, reaching US$147 million, fuelled by a 10% increase in Zimbabwe and a 2% rise in the broader region. Despite economic challenges, Kenya continued to be a pivotal market, contributing to Simbisa\u2019s success through higher average customer spending.<\/p>\n
The company\u2019s adjusted operating profit experienced notable growth, up by 22% to US$21,4 million, reflecting improved purchasing efficiencies and stronger margins.<\/p>\n
Additionally, the company successfully reduced its debt from US$16,1 million to US$12,2 million, achieving growth in operating profit while maintaining a lower gearing ratio.<\/p>\n
Simbisa\u2019s healthy cash and cash equivalents closed at US$9,5 million, providing a positive buffer of available cash.<\/p>\n
However, Fincent said the heightened dollarisation in the local economy had a significant impact on operating expenses, leading to a 19% increase.<\/p>\n
The research firm said despite recent liquidity challenges Simbisa\u2019s stock remained highly liquid, with an average monthly trade volume of 1,8 million shares since its listing on the waterfall bourse.<\/p>\n
\u201cFurthermore, Simbisa Brands is well-positioned for future growth, as indicated by its strategic restructuring efforts. The decision to close underperforming outlets and transition smaller markets into a franchise structure demonstrates a commitment to operational excellence,\u201d it said.<\/p>\n
\u201cBy focusing exclusively on its best-performing core brands and markets, Simbisa aims to optimise its operations and drive sustained growth.\u201d<\/p>\n
In the stock market, Fincent said Simbisa\u2019s performance on VFEX remained dynamic.<\/p>\n
\u201cSimbisa Brands Limited is well-poised for medium to long-term upside potential. The company\u2019s strategic restructuring, commitment to dividends, and focus on core brands and markets position it as a compelling investment option in the region,\u201d it said.<\/p>\n
\u201cInvestors can anticipate sustained growth and value creation as Simbisa continues on its trajectory of operational excellence and financial strength.\u201d
\nhttps:\/\/www.newsday.co.zw\/business\/article\/200024210\/simbisa-is-a-standout-performer<\/p>\n","protected":false},"excerpt":{"rendered":"
LEADING research firm Fincent Securities says the Victoria Falls Stock Exchange (VFEX)-listed Simbisa Brands Limited continues to be a standout performer, not only according to its financial indicators but in its strategic initiatives as well. It said the company\u2019s 10% revenue growth in Zimbabwe, coupled with a remarkable 31% surge in operating profit, reflected a […]<\/p>\n","protected":false},"author":1,"featured_media":2814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-2813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-updates"],"_links":{"self":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts\/2813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2813"}],"version-history":[{"count":1,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts\/2813\/revisions"}],"predecessor-version":[{"id":2815,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/posts\/2813\/revisions\/2815"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=\/wp\/v2\/media\/2814"}],"wp:attachment":[{"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ctrade.co.zw\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}