Masimba delivers strong Q3 performance, cautious outlook

 

Masimba delivers strong Q3 performance, cautious outlook 

By Allan Mbotshwa 

Masimba Holdings Limited, a leading infrastructure group, has reported a solid performance for the third quarter that ended on 30 September 2024.

Revenue for the nine months grew by 10% to USD45.8 million, driven by a robust order book in the Mining and Housing Infrastructure segments. However, liquidity constraints in the market tempered growth.

Despite the challenging operating environment, the Group maintained profitability through cost-containment strategies and improved profit margins. The liquidity position strengthened due to enhanced working capital management.

The Group's commitment to safety, health, environment, and quality management systems resulted in zero accidents reported in the quarter and year to date.

The third quarter saw moderating inflationary pressures initially, driven by the introduction of the Zimbabwe Gold.

However, the devaluation of the Zimbabwe Gold in late September led to increased inflationary pressures. Currency volatility remains a significant business risk.

The macroeconomic environment is expected to remain tight, with contractionary fiscal policy and ongoing pricing distortions. Nevertheless, the Group is optimistic about the potential for sustained growth through securing financing for infrastructure development projects.

Despite the challenging environment, Masimba Holdings is forecast to remain profitable for the full year 2024.