Carte Blanche with Perry

For much of 2019, Zimbabwe`s economy has oscillated between confusion and chaos, and as the second half of the year wears on, the headwinds show no immediate sign of relenting. In fact one might even argue that there is a distinct success about the failure of the current administration in delivering on its promises. This in spite of government`s own constant and consistent barrage of positive narratives attempting to placate the nation. And for the most part, the country has been in need of placating, reeling under the weight of the “big-bang” shock therapy being administered under government`s Transitional Stabilisation Program, adopted in October 2018. For the ardent observers, current events are reminiscent of the recurring themes during the hair-raising hyperinflation era. Winding fuel queues, electricity shortages, incessant talk of “unscrupulous and profiteering” retailers, and the threats to faceless “economic saboteurs”, all bring flashes of the tumultuous ‘lost decade”...

Delta Corporation has long been seen as Zimbabwe`s bellwether stock, reflective of the health of the overall economy. Lately, Delta has drawn some negative, though unsurprising reportage, with one of the country`s top dailies recently reporting that the company was left with a week`s worth of raw materials for the manufacture of sparkling beverages and Super Chibuku, its popular sorghum beer offering. Stories such as these confirm what is visible by way of a mere cursory glance on the shelves of retailers countrywide. Delta Corporation`s product supply has been greatly affected by challenges in accessing foreign currency to pay key suppliers. The company reportedly needs up to $75 million annually for raw material imports. This is the context in which Delta`s FY2017 earnings report announced last Wednesday comes under. Stellar earnings Delta – Zimbabwe Stock Exchange`s biggest company by market capitalisation, of over $2.5 billion – announced strong earnings bearing ...

The next coming weeks will see several of Zimbabwe`s listed companies publish their financials, as Zimbabwe`s earnings announcements season progresses. Already a couple of companies have released their financial results, and there are salient themes that stick out, giving leading indicators of what to expect for some of the leading corporates in Zimbabwe. Numbers are not opinions, and the statistics point to an unforgiving economic environment, which will see even those companies with solid business models and good strategy, struggle under the throes of weakening economic fundamentals. As such, expect tightening margins, slumping profits and slowing revenues this year. Positive earnings stories will be pretty hard to come by. These trends are also going to affect even Delta and Econet, Zimbabwe`s traditional heavyweights, and if these two giants are sneezing on account of the economy, then the rest of the listed companies will most certainly catch a cold. Delta Beverages ...