TZI makes $26.8 billion profit, management change


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TZI, which says it has just completed a give-year cycle of contraction and unbundling, had a net profit of $26.8 billion last year, up from only $4.2 billion the previous year.

According to its results for the year ending September, sales brought in $67.6 billion compared with $22.6 billion the previous year. Operating profit soared from $3.6 billion to $27.9 billion.

The company, which says the cycle of contraction and unbundling saw a number of personnel and businesses out of the group, earned a net profit of $8.2 billion from discontinuing operations.

Operating profit was $5.7 billion, while net profit stood at $8.2 billion having been boosted by profit from an associate company and interest receivable.

Sales from discontinuing operations totalled $11.9 billion the previous year. Operating profit was $2.1 billion and net profit $2 billion.

Continuing operations brought in $52.8 billion in revenue, $22.2 billion in operating profit and a net profit of $18.6 billion.

In 2002, they earned revenue of $10.7 billion, operating profit of $1.5 billion and net profit of $2.2 billion.

The company says it has now entered into a new phase of regional and international expansion focused within the agricultural sector. It held 54 percent of Agriflora, 100 percent of Strategis Africa and 50 percent of Fresca.

Agriflora had received new capital from the Industrial Development Corporation of South Africa, Hannover Reinsurance and TZI. It contributed $2.6 billion in the company’s profits largely due to a strong second half.

Strategies Africa performed well in Kenya and Tanzania. The Zambian operation was unsatisfactory but it contributed to the profitability of the company’s Air Evacuation business.

Operations at Fresca were disrupted keeping turnover at 50 percent of capacity, but the company still contributed $1 billion to profitability. Demand for its dehydrated vegetables remains unsatisfied both in Europe and America.

There was a boardroom coup at the company’s annual general meeting at the end of January resulting in the previous board resigning en masse.

Those who went out were chairman Albert Nhau, chief executive Hillary Duckworth, and directors Simon Jones and John Rabb. David Edwards who represents the interests of Hannover Reinsurance remained on the board.

Rindai Jaravaza came in as chairman, Edwin Moyo as chief executive with Paddington Chinake and Velantine Chitalu as directors.

(119 VIEWS)

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The Insider

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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