PWS | Financial statements for the 6 months to 31 March 2020
Commentary
The half year to the end of March 2020, fell just at the beginning of the disruptions arising from the Covid19 pandemic. Business up to late March 2020 had been pleasingly buoyant, with volumes above those achieved in the same period in the previous year.
Unfortunately, massive inflation, devaluation, and changes in exchange rate management policies, during the period under review, make the financial information extremely difficult to interpret. Inflation adjusted accounts are presented, however, uncertainty surrounding the inflation indices used, do not make these numbers definitive.
Revenue climbed from $505 m to $718 m, giving profit after tax of $167 m; up from $21 m and EPS increased from 5.63c to 41.95c.
Simultaneously and intentionally, there was significant growth in the balance sheet value, with shareholder equity rising 14.5%, from $581 m to $665 m.
Our operations were completely closed for a good part of the month of April, as a result of the COVID-19 lockdown, and we suffered substantial losses as a result. We have subsequently re-opened, and volumes have already recovered sufficiently to return us to profitability.
It is clear that the Zimbabwean economy will shrink again in 2020, however we still believe that we are well placed to continue growing market share, and thereby increase shareholder value.
Given the immediate uncertainty, both in Zimbabwe and internationally, the Board has considered it prudent not to declare a dividend for the half year ended 31 March 2020. However, we are optimistic that we should be in a position to declare a dividend at the end of this financial year.
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