Cassava records 11% profit increase

By Wellington Zimbowa
CASSAVA Smartech registered a gross profit increase of 11 percent (%) and a 2% EBITDA margin in 2019 compared to the previous year, while the Agri-tech and Moovah revenues have been spurred by rising digital on-demand agriculture platform that encompasses both smallholder and large-scale commercial farmers, and the non-motor business for the short term insurance business unit.
The group posted gross profit increases of 68% from 57%, in 2019, while the EBITDA margin rose to 29%, from 27% in the subsequent year, registering RTGS 4.6 billion revenue after considering inflation impact for the period, compared to four months revenue for the period ended February 2019 of RTGS 1.1 billion.
EBITDA margin refers to a company’s measure of operating profit as a percentage of its revenue.
The acronym stands for earnings before interest, taxes, depreciation, and amortization. Knowing the EBITDA margin allows for a comparison of one company’s real performance to others in its industry.
Group chairperson Sherrie Shereni said stability, efficiency and effectiveness of the company’s technology are key pillars of the business’s success.
“The group is cognizant that our customers entrust their confidence to us based on our continued ability to deliver a consistently high quality of service,” he said.
Meanwhile, the company lost RTGS 2.0 billion at the close of its trading year ending 29 February 2020, due to the continuous depreciation of the local currency against hard currency.
The company had US$42.8 million net foreign liabilities with the US$30.5m being the group’s 50% being the total liability debentures issued by Econet Wireless Zimbabwe Limited.
Cassava SmarTech is a subsidiary of Econet Wireless and it runs EcoCash, banking services Steward Bank and micro-insurance through EcoSure and eCommerce.
The company revalued its property and equipment for the year ended 29 February 2020 because the associated value in local currency had been wiped by inflation.
“Most of the group’s tangible and intangible assets were procured in foreign currency,” said the chairperson.
Shereni revealed that mobile money and banking businesses contributed 89% of total revenue for the year, a slight decrease from 91% obtained the previous year.

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