Zimpapers grows revenue by 14% to $22 milliom

Published: 26 September 2013

Zimpapers released a decent set of results with a 14% growth in revenue to $22.4m.

The gross profit increased by 21% to $16.5m on efficient purchasing of critical raw materials mainly newsprint and inks.

Profit before tax improved significantly from a loss of $0.9m in the prior comparable period to a profit of $0.5m which was attributable to the effective implementation of revenue growth strategies and cost containment. However, finance costs increased significantly by 35% to $0.5m mainly driven by the expensive short-term debt that the group accessed for recapitalisation.

The group resolved to dispose non-core assets as a way of mitigating against huge borrowing costs and to restructure its balance sheet.

The newspaper division recorded an impressive 72% increase in operating profit to $3.1m. The division performed well despite increased competition and is adopting new technology to fully exploit opportunities offered by new media.

The commercial Printing Division was negatively affected by obsolete equipment, limited capacity, huge overheads and debt overhang. However, despite the challenges the division managed to maintain market share. Although the Broadcasting division recorded an operating loss it is improving steadily as it continues to establish its brand in the radio market.

The company continues to solidify its market leadership in information dissemination by use of both electronic and print media. Zimpapers refurbished some of its machinery and managed to purchase a new printing press as well as a new production and finance system. The recapitalisation has resulted in improved operational efficiencies and production capacity.
- imara

Tags: Zimpapers,