Delta, Econet join Africa’s top firms

econetZIMBABWE Stock Exchange-listed companies Delta and Econet Wireless have earned a place among top 250 companies in Africa, a new report has shown, underlying the duo’s strength despite the tough economic environment obtaining in the country.

BUSINESS REPORTER

According to a ranking by African Business magazine, Delta and Econet were on positions 100 and 153 respectively in a list dominated by South African companies.

Delta was a new entrant onto the list and its $1,3 billion market capitalisation earned it a 100th position on the ranking.

Econet was three places lower from last year’s 150 with a market cap of $820 million.

The ranking was based on market capitalisation as at March 31 2015.

South African firms dominated the rankings occupying the first 14 positions.

The inclusion of two Zimbabwe companies is testament to their resilience to the economic headwinds posting profits at a time the majority of firms are struggling to hold fort. The duo has managed to diversify to other product lines.

Delta is capitalising on alternative beverages such as maheu and sorghum beer.
Econet is maximising on its vast network upgrade that has allowed the company to do mobile money transfer services.

In its results for the year ended March 31 2015, Delta said the slowdown in the economy had resulted in a difficult trading year.

“Consumer spending declined significantly. The company continued to focus on taking measures to capture value and retain consumers in its portfolio of beverages while expanding and maintaining its facilities for future recovery.

The weakening regional currencies have made this more challenging,” the company said.

It posted an after-tax profit of $92,8 million for the period compared to $107 million recorded in the same period in 2014.

It said revenue for the group was 4% down due to lower sales and volume in both lager beer and sparkling beverages.

In the financial year ended February 28 2015, Econet saw its revenue falling to $746,2 million from $752,7 million in the same period last year. Profit after tax declined to $70,2 million from $119,4 million.

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