HARARE – Simbisa Brands' liabilities have ballooned 276 percent while net foreign exchange losses accelerated during the year ended in June on the devaluation of the Zim dollar.
Simbisa’s balance sheet was previously based on a 1:1 exchange rate valuation against the US dollar, but has now revalued to the prevailing 1:14.
The company, which runs Nando's, Chicken Inn and Steers in Zimbabwe said total liabilities firmed 288 percent to ZWL181.2 million, while total debt surged 276 percent to ZWL163.2m for the full year period to end June 2019.
Zimbabwe's currency reforms have put pressure on companies’ bottom lines, with most failing to comply with International Financial Reporting Standards.
“A net foreign exchange loss of ZWL2.7m includes exchange losses arising from the revaluation of foreign currency denominated assets and liabilities on the Zimbabwe balance sheet,” Simbisa chairperson Addington Chinake said.