ECONOMIC PERFORMANCE

Our approach is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term.

We are operating in an economic environment heavily constrained by domestic and global challenges which impact on our business performance. As the global economic slowdown in major economies continues due to the Covid-19 Pandemic, the Group continues to take appropriate measures and strategies to explore alternative opportunities for value creation.

OUR STRATEGY

We continue to build a resilient Group of businesses that will create and deliver sustainable value for our shareholders and stakeholders. Our strategy is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term.

DEFINED CONTRIBUTION PENSION PLAN

Our Management Approach

The Group ensures that all qualifying employees are members of voluntary and statutory pension schemes managed through self-administered defined contribution pension schemes and the relevant statutory bodies. We manage the Innscor Africa Limited Pension Fund, National Foods Pension Fund and Colcom Pension Fund under the Group. Compulsory external schemes comprise the National Social Security Authority Scheme, Workers Compensation Insurance Fund and the Catering Industry Pension Fund.

The total contributions to the schemes for the year is presented below:

Inflation - Adjusted

 Unit20202019201820172016
PensionZWL 25,288,69071,511,87898,963,156102,651,65074,575,352

Historical

 Unit20202019201820172016
PensionZWL 11,205,4764,722,2324,286,6394,446,4083,230,269

ECONOMIC VALUE : GENERATED AND DISTRIBUTED

Economic value generated is distributed through different forms that include operating costs, employment, procurement, taxes and capital investment which is presented in detail through our financial statements. However, in this section, we present distributions considered significant and material to our stakeholders.

Packing

Inflation-Adjusted

Economic Value GenerationUnit20202019201820172016
Value Generated *ZWL10,116,730,4657,182,391,6075,434,232,2154,848,608,4214,800,361,909
Other Income and InterestZWL90,369,770460,232,824121,865,048104,522,943136,331,161
Equity Accounted EarningsZWL1,192,648,522438,891,464272,082,899143,679,523109,908,913
ZWL11,399,748,7578,081,515,8955,828,180,1625,096,810,8875,046,601,983
Economic Value DistributionUnit20202019201820172016
Other Operating CostsZWL(3,333,059,935)(2,834,984,419)(1,980,675,519)(1,884,372,496)(1,930,041,132)
Staff Costs and benefitsZWL(3,079,714,053)(1,955,333,881)(1,739,047,950)(1,525,740,010)(1,666,451,012)
Impairment and related chargesZWL(393,522,320)(117,081,762)(83,365,623)(228,749,155)(39,452,871)
Depreciation and AmortisationZWL(605,704,443)(443,520,681)(383,687,787)(352,978,275)(368,792,082)
Providers of CapitalZWL(493,746,900)(205,690,819)(189,924,512)(143,910,918)(141,469,783)
Provisions for TaxesZWL(907,537,749)(852,207,564)(326,801,366)(183,310,529)(196,780,625)
Monetary gain(262,925,457)(168,636,113)
Value AddedZWL3,636,433,4531,841,332,8831,124,677,405777,749,504703,614,479

* Measured by gross profit during the period.

Historical

Economic Value GenerationUnit20202019201820172016
Value Generated *ZWL6,402,751,809571,286,047235,386,509210,019,919207,930,097
Other Income and InterestZWL1,063,529,18651,747,2695,278,6464,527,4645,905,253
Equity Accounted EarningsZWL858,414,09949,418,33311,785,4086,223,5514,760,760
ZWL8,324,695,094672,451,649252,450,563220,770,934218,596,110
Economic Value DistributionUnit20202019201820172016
Other Operating CostsZWL(1,593,289,136)(179,002,619)(85,793,959)(81,622,545)(83,600,705)
Staff Costs and benefitsZWL(1,472,183,230)(141,380,811)(75,327,739)(66,088,198)(72,183,166)
Impairment and related chargesZWL397,286,609(9,987,551)(3,611,024)(9,908,385)(1,708,921)
Depreciation and AmortisationZWL(82,409,339)(32,537,965)(16,619,630)(15,289,432)(15,974,415)
Providers of CapitalZWL(237,452,504)(13,401,501)(8,226,676)(6,233,574)(6,127,835)
Provisions for TaxesZWL(920,064,066)(57,302,528)(14,155,566)(7,940,188)(8,523,652)
Value AddedZWL4,416,583,428238,838,67248,715,96933,688,61230,477,416

* Measured by gross profit during the period.

PAYMENTS TO GOVERNMENT

The Group tax affairs are managed under the Group Tax Officer. Our tax practice is to comply with all tax laws in Zimbabwe and priorities paying due taxes on times. The Group Tax Officer regularly engage with our Tax Authority, Zimbabwe Revenue Authority (ZIMRA) for any upcoming tax developments.

During the year, our payments were as follows:

Inflation - Adjusted

 Unit20202019201820172016
Corporate Tax – AssociatesZWL37,282,354169,537,232120,605,40526,033,92326,514,663
Corporate Tax – SubsidiariesZWL248,157,289228,904,031189,924,512151,509,722266,614,834
Intermediate Money Transfer Tax (IMTT)ZWL246,688,300241,406,561---
Value Added Tax (VAT)ZWL228,676,248(146,449,146)121,193,764152,932,515135,180,072
Import DutyZWL79,088,674105,343,755125,109,106100,642,693118,307,753
Other TaxesZWL706,109,169328,654,595223,567,731121,429,384132,022,311
Grand TotalZWL1,546,002,035927,397,027780,400,518551,548,236678,639,634

Historical

 Unit20202019201820172016
Corporate Tax – AssociatesZWL16,519,89611,195,2615,224,0841,084,3571,148,496
Corporate Tax – SubsidiariesZWL109,959,05815,115,5028,226,6766,562,72011,548,556
Intermediate Money Transfer Tax (IMTT)ZWL109,308,14615,941,097---
Value Added Tax (VAT)ZWL101,326,965(9,670,657)5,249,5696,624,3495,855,393
Import DutyZWL35,044,3716,956,2945,419,1644,359,3895,124,560
Other TaxesZWL312,878,57721,702,4549,683,9495,259,7755,718,613
Grand TotalZWL685,037,01361,243,95133,803,44723,890,95029,395,618