Masimba Holdings Revenue Slides 43%

Rutendo Mazhindu- Zim Now Reporter

Masimba Holdings Limited recorded a steep 43% revenue decline for the first quarter ending March 31, 2025, with earnings falling to US$8.1 million from US$14.3 million in the same period last year.

The construction and engineering group attributed the drop to its ongoing strategy of reducing reliance on public sector contracts, instead shifting focus to private projects. The pivot appears successful in reshaping its revenue structure—private sector contributions surged to 92%, up from just 40% last year.

“The drop in revenue was a result of deliberate measures to manage exposure to public works and grow private sector business,” said Pearl Mutiti, the company secretary.

Persistent liquidity challenges weighed heavily on operations, particularly in the public sector where several projects were suspended to mitigate credit risk. In addition, excessive rainfall during the quarter disrupted progress on private developments.

Despite the revenue dip, Masimba remained in the black, posting a 5% profit after tax. However, this marked a sharp decline from the 18% margin achieved in the corresponding quarter of 2024.

The group reported a slight improvement in its financial position, with the liquidity ratio edging up to 1:1.25 from 1:1.23. Borrowings dropped to US$1.7 million from US$2 million, and no new debt was taken on during the quarter.

Masimba maintained a strong safety record, reporting no workplace injuries and a Lost Time Injury Frequency Rate of zero.

The company flagged continued uncertainty due to liquidity constraints and policy inconsistencies that are distorting pricing and complicating long-term planning. However, management remains cautiously optimistic.

“The Group is optimistic about an improvement in the macro-economic environment, supported by a better agricultural season and a rise in mineral prices,” said Mutiti.

Masimba’s short-term strategy will centre on cost containment and preserving value amid a challenging economic landscape.