Diversified technology solutions giant, Cassava Smartech Zimbabwe Limited (Cassava) announced a revenue netting of ZWL$ 4.6 billion in its maiden full year financial report since the unbundling from Econet Wireless in November of 2018.
In its financial year performance for the year ended 29 February 2020, comparisons were made against the initial four months to February 2019.
Revenue grew 43 percent growth in inflation adjusted terms from that earned in comparable period on the back on strong performances in the mobile money and banking businesses.
Despite mobile money (Ecocash) and banking contributing 89 percent of the Group’s revenue, the two segments’ contribution marginally fell from previous 91 percent during the initial four months to February 2019 as a result of the diversification strategy adopted thereafter which includes digital solutions in agriculture, insurance, education and transport among others.
“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 small holder 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 on-boarding platforms, as well as enhanced product mix to cater for the cross profile of the segments we service,” said the Group chair, Sherree Shereni.
Ecocash subscribers grew 15 percent year on year to reach 10.8 million while digital banking customers grew 34 percent to reach 1.8 million.
The Group recorded an increase in gross profit margin to 68 percent from 57 percent in 2019 and in the EBITDA margin to 29 percent, from 27 percent 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 optimization drive to complement the revenue generation initiatives being implemented,” said Shereni.
However, changes in monetary policy resulting in depreciation of the local currency resulted in the Group incurring foreign exchange losses amounting to ZWL$ 2 billion.
At the reporting date, the Group had net foreign liabilities amounting to US$42.8 million, of which US$30.5 million comprise of the Group’s 50 percent allocation of the overall liability in the debentures issued by Econet Wireless Zimbabwe Limited.
Going forward, the Group has embarked on a banking system upgrade which will improve customer service whilst enhancing the bank’s operational efficiency following successful upgrades on its Ecocash platform.
