Oliver Kazunga, Senior Business Reporter
DIVERSIFIED media house, Zimpapers Group has maintained a sound balance sheet that enables it to meet short and long-term debts, unaudited financial results for the half-year ended June 30, 2017 show.
The Zimbabwe Stock Exchange-listed firm is the country’s largest media house, which runs the newspaper, commercial printing, digital and broadcasting divisions.
During the period under review, the group’s total liabilities dropped to $30.9 million compared to $31.8 million in December 31, 2016.
Total assets for the group were $39.7 million up from $39.6 million as of December 31, 2016.
Zimpapers still maintained a strong footing on solvency and the ability to meet both short and long-term obligations.
The group’s gross profit margin was at 75 percent after recording a gross profit amounting to $13.7 million while revenue stood at $18.3 million.
In the prior period, gross profit margin was at 66 percent after the group posted a $12.7 million gross profit while revenue was pegged at $19 million.
Zimpapers chairman Mr Delma Lupepe attributed the drop in revenue to a reduction in circulation volumes largely due to liquidity constraints arising from cash shortages in the economy.
“Despite the adverse revenue performance compared to last year, the company recorded eight percentage improvement in gross profit as a result of better cost management,” he said.
Mr Lupepe also said the group’s operating costs during the period under review were increased for future growth following a deliberate approach to improve investments in new products that include digital, Business Weekly and Zimpapers Television Network production house.
In the period under review, the company increased its investment in NamZim by $0.2 million.
Mr Lupepe said due to foreign exchange limitations and the resultant long lead time associated with the importation of raw materials, inventory was increased by 13 percent to $1.3 million to avoid stock outs.
The group’s debtors’ book went up by seven percent during the period under review as a number of its clients were struggling to meet payment terms.
“More stringent collection efforts will be applied to address the debtors’ issue. In line with the agreed payment plans, the company has managed to reduce its long term liabilities by two percent to $18.7 million,” he said. — @okazunga