Audrey Galawu
ASSISTANT EDITOR
ZECO Holdings Limited performance for the first quarter of 2024 was subdued as the group continues to transition to a new strategic focus.
The group was operating costs and production costs were also negatively impacted by the economic environment which was uncertain due to the delay in the announcement of the monetary policy statement.
In a trading update for the first quarter ending March 31, 2024, the Group reports that despite the difficult operating environment the group recorded a positive improvement compared to the prior year, mainly driven by inflation.
The revenue for the period under review was ZWL$1165.20 million (ZWL$1 636.16 million inflation adjusted) compared to the prior year in the same period which recorded ZWL$63.99 million (ZWL$1 619.24 million inflation adjusted).
Despite the difficult operating environment, the group realised revenue from the shop space business, which resulted in a positive effect on working capital.
On the shop space side, shop occupancy stood at 69.57%, an improvement from 53.33% for the same period last year.
“The moderate occupancy rates are indicative of the space side entering the growth stage whilst construction and renovations take place.”
“We expect the tight monetary conditions to continue with less liquidity in a bid to stabilise the new local currency, the Zimbabwe Gold. We also expect new business once we complete construction of new shop space.
“The business will continue to positively innovate in the competitive environment by pursuing new market segments including the construction industry for our other business unit,” reads the report.
Administration expenses stood at 8.41% and Property expenses at 29.76% for the quarter.
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