Story by Stanley James, Business Editor
ZIMBABWE’s listed companies are reinvesting profits for the 2024 financial year on strategic business units in line with growth and recovery aspirations.
Most listed companies whose year-end financials are on December 31 2024 have started releasing their audited results.
Results gleaned by the ZBC News show resilience and improvements in financial indicators during a year that was characterised by climate change-induced drought.
However, for strategic reasons, companies are reinvesting earnings into business units.
“While we have presented our financials, it is imperative to look into the future growth by identifying the needs of the shareholders. By reinvesting part of our profits, we have also taken into consideration how we balance our books between current financial trends and future operations. Going forward, we remain committed to expanding our Business portfolio base in Zimbabwe,” Old Mutual Zimbabwe Group’s Chief Executive Officer (CEO), Mr Samuel Matsekete said.
“This is the time for listed companies to reflect on what happened last year. By doing so, a clear analysis of the overall performance becomes vital in terms of decision-making by the shareholders over whether to declare dividends or not. Therefore, with most firms reinvesting profits, this is a noble idea that will yield long-term results,” Zimbabwe National Chamber of Commerce’s Mr Chris Mugaga added.
Zimbabwe’s industry and commerce is also being directed to embrace the Environmental Social and Governance structures within their financial statements in line with global financial rules.
The firms are also being compelled to present their balance sheets in the Zimbabwe Gold currency.
