Medtech drags down ZSE

HARARE - Pharmaceutical group MedTech shed 50 percent in Thursday’s trade, dragging the All Share Index down for the third consecutive day.

The group — which posted a loss of $577 016 during the six months to June from $305 408 recorded in the same period in prior year — closed the session at $0,0001, trailed by PPC which lost 9,16 percent to $1,1628.

MedTech — which has been in the woods — registered a 16 percent increase in revenue to $5,11 million for the first half of 2017 compared to $4,40 million  recorded in the corresponding period in prior year.

Rose Mazula, the company’s chairperson, is on record saying the major factor contributing to the firm’s dismal performance was the net exchange rate loss included in the finance cost for the half year of $995 85.

The group’s FMCG segment posted a loss before tax of $319 784 despite revenues increasing to $3,5 million from $2,98 million as well as the increase in gross profit margin to 29 percent compared to 26 percent in prior year same period.

The FMCG segment includes MedTech Distribution and Smart Retail. Sales for the segment increased 19 percent and margins improved due to changes in sales mix.

The medical segment sales declined 32 percent mainly due to cutting of lines of credit by foreign suppliers caused by delays in foreign payments by banks. Revenue was down to $446,812 from $660,693 in 2016.

The manufacturing segment revenue increased 46 percent to $1,41 million from $969,268 same period in 2016 and margins also increased significantly to 24 percent from 11 percent.

Meanwhile, amid a flurry of activity with blocks in property group First Mutual Property and pharmaceutical group Medtech highlighting
the session, the Industrial Index was similarly down, shedding 0,02 percent and closing at 386,56 points.

The Mining Index emerged the major casualty of the slide, letting go 0,16 percent to 163,99 points as the ZSE Top 10 Index touched 119,75 points after shedding 0,06 percent.

The market recorded a negative breadth as nine counters traded in the negative territory while, two were on the winning side.

Crocodile skin producers Padenga dropped 2,07 percent to settle at $0,6047 while retail giants OKZIM fell 1,07 percent and closed at $0,2210 while, Bindura shed 0,18 percent and ended at $0,0552.

Property concern FMP anchored the loss mitigation exercise with a 13,88 percent climb to $0,0558 while, Econet firmed 0,09 percent to settle at $1,2647.

— Financial Gazette

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