Cassava Smartech Zimbabwe Limited (“The Group”) Group recorded revenue of ZWL4.6billion, compared to four months’ revenue for the period ended February 2019 of ZWL1.1 billion.
In a financial statement released by the board chairperson Sheree Shereni that they are excited about the growth of Agritech and Moovah revenues included in our Insurtech and Other segments respectively
“Despite the challenges in the obtaining operating environment, the Group recorded revenue of ZWL4.6billion, compared to four months’ revenue for the period ended February 2019 of ZWL1.1 billion. Mobile Money and Banking businesses contributed 89% (FY19: 91%) of the total revenue for the year.
“The decline in percentage contribution for the Fintech business segment reflects the positive effects of the group’s revenue diversification strategy. The ongoing transformation of the business within the Group remains a priority as we work on scaling up the new businesses and diversifying our revenue earnings for sustainability.
“We are excited about the growth of Agritech and Moovah revenues included in our Insurtech and Other segments respectively. The growth was largely driven by the digital on-demand agriculture platform catering for both smallholder and large-scale commercial farmers, as well as the non-motor business for the short-term insurance business unit.
“Our Life business (EcoSure) maintained solid performance, anchored on innovative digital onboarding platforms, as well as enhanced product mix to cater to the cross profile of the segments we service”, said Shereni.
The Group recorded an increase in gross profit margin to 68% from 57% in 2019 and the EBITDA margin to 29%, from 27% in the prior year. This increase occurred despite the pressure that the economic environment has continued to place on the business margins. To mitigate this, the business embarked on an elaborate cost optimisation drive to complement the revenue generation initiatives being implemented.
The business revalued its property and equipment for the year ended 29 February 2020 as the associated value in Zimbabwe Dollars was no longer meaningful due to inflation and most of the Group’s tangible and intangible assets were procured in foreign currency.
However, the continued depreciation of the Zimbabwe dollar against the United States dollar had a significant impact on financial performance as the company realised foreign exchange losses amounting to ZWL2.0 billion.
At the reporting date, the Group had net foreign liabilities amounting to US$42.8 million, of which US$30.5 million comprised of the Group’s 50% allocation of the overall liability in the debentures issued by Econet Wireless Zimbabwe Limited.