Padenga Holdings more than tripled its first-half profit after tax as higher revenue, stronger cash generation and a favourable gold-price environment lifted the Zimbabwean group's financial performance in the six months to June.

Profit after tax from continuing operations rose 212% to US$82.75 million for the six months ended June 30, 2026, from US$26.49 million in the same period last year.

Revenue increased 44% to US$187.74 million from US$130.68 million, while operating earnings before depreciation, impairment, amortisation and fair-value adjustments more than doubled to US$100.82 million from US$48.10 million.

The company said the stronger performance was driven by the operating environment across its businesses, particularly the performance of its mining operations amid stronger gold prices.

“The Group sustained its positive momentum, delivering another strong financial performance for the six months under review. This growth was driven by a favourable gold price environment,” Padenga chairman Themba Sibanda said.

The stronger earnings were accompanied by a substantial increase in operating cash generation. Cash generated from operations rose 126% to US$90.26 million, compared with US$39.89 million in the first half of 2025.

Sibanda said the domestic operating environment had also provided greater stability during the period.

“Locally, the operating environment remained relatively stable during the first half of the year, supported by lower inflation and improved exchange rate stability,” he said.

He added that improved foreign-currency retention had helped the company plan and manage its costs.

“The foreign currency retention enhancement provided greater predictability in planning and managing operating costs,” Sibanda said.

The mining business was a major contributor to the group's performance, with Padenga saying Dallaglio maintained strong operational performance through tighter cost control, efficiency improvements and continued investment.

“Dallaglio delivered a strong performance, underpinned by management's continued focus on discipline, operational efficiency and profitability,” Sibanda said.

The company also pointed to stronger mined grades and improved plant recoveries, together with continued investment in mine development, drilling and operational optimisation.

The higher gold-price environment provided an additional boost to the mining division.

“This favourable pricing environment continued to underpin the strong performance of the Group's mining division,” Sibanda said.

Padenga expects the mining operation to maintain the momentum, with Dallaglio forecasting full-year 2026 gold production to exceed the previous year's comparative output.

The earnings improvement was reflected in shareholder returns. Basic earnings per share rose to 10.28 US cents from 3.24 US cents, while diluted earnings per share increased to 10.28 US cents from 2.90 US cents.

The board declared an interim dividend of 3.19 US cents per share, 177% higher than the 1.15 US cents declared for the corresponding period last year.

The dividend will be paid on or around October 16 to shareholders registered at the close of business on October 9. The counter will trade cum-dividend until October 7 and ex-dividend from October 8.

Net assets increased 65% to US$231.62 million from US$140.75 million a year earlier, while net cash outflow from investing activities fell 58% to US$5.25 million.

Market analyst Lethukhuthula Kozah said the results demonstrated growth not only in revenue but also in earnings, cash generation and shareholder distributions.

“Padenga continues to deliver strong numbers,” Kozah said.

“For H1 2026, revenue grew 44%, profit after tax surged 212%, cash generated from operations increased 126%, while the interim dividend jumped 177% to 3.19 US cents per share.”

Kozah said the combination of earnings growth and stronger cash generation was particularly significant for investors assessing the performance of listed Zimbabwean companies.

“...real earnings growth, stronger cash generation, and increasing returns to shareholders,” he said.

Padenga said its board remained focused on maintaining financial resilience, improving shareholder value and generating returns, while management continued to invest in the operational performance of the group's businesses.

“The Board remains focused on preserving value for the Group's financial resilience, enhancing shareholder value and ensuring attractive returns to shareholders,” Sibanda said.

The unaudited results were approved by the board on September 22, 2026, with the company noting that the short-form announcement represents only a summary of its full financial results.