HomeBusinessByo council arm rakes in $4,3b profit

Byo council arm rakes in $4,3b profit

Loughty Dube

THE Bulawayo Municipal Commercial Undertaking (BMCU) has made a $4,3 billion profit for the year ended December 31 after posting poor results two years ago.

Verdana, Arial, Helvetica, sans-serif”>The latest positive financial result reflects an increase in profit generated by BMCU from last year’s profit figure of $582 million to the current figure of $4,3 billion.

BMCU is the Bulawayo City Council’s commercial unit that comprises Ingwebu Breweries and two farms that provide ingredients to the brewery.

The BMCU this week paid out a $382 million dividend to the Bulawayo City Council, a major shareholder in the company by virtue of having ceded assets to the BMCU.

Receiving the dividend, Bulawayo executive mayor Japhet Ndabeni Ncube said the profit achieved by BMCU was a result of the restructuring exercise that took place at the entity last year.

“We are grateful to BMCU for realising this profit and I can say this was due to the vigorous work done by the new team after the restructuring exercise at the company. I am very glad to say that this dividend you have paid us will go a long way towards improving service for local residents,” Ncube said.

According to the company’s financial statement, about $2 billion of the profit was realised from the brewery while $2,3 billion was raised from activities at the two farms.

BMCU managing director Allen Lang said the profit was a result of aggressive marketing and farm operations while another contributory factor was asset revaluation.

“The reason for the posting of this good profit is a result of cost controls and assets revaluation while the farming concern improved in value,” Lang said.

He said the company’s profit improved from $582 million to the current $4,3 billion as a result of the pricing of the product according to inflation levels and expanding volumes.

Recent Posts

Stories you will enjoy

Recommended reading