WestProp Holdings revenue for the half-year period to June 30, 2024, grew by 77 percent to US$14 million in 2024 driven by strong performance across the group's various projects.
Chairman Dr Michael Louis noted, "Our results demonstrate the strength of our diversified portfolio and our ability to adapt in a challenging environment.
"We are committed to delivering high-quality developments and continuing to create value for our shareholders."
WestProp's revenue was largely driven by its prime real estate developments, with Pokugara Properties, a residential estate featuring townhouses, contributing 46 percent of total revenue.
The development outperformed others in the portfolio, signalling strong demand for townhouses in the market.
Pomona City, WestProp's flagship project touted as 'A Smart City within a City', also contributed significantly, making up 43 percent of revenue.
The project, which is almost sold out, generated income through the sale of vacant stands.
The remaining 11 percent of revenue came from Seatrite Properties, which offers apartment residential units under the Millennium Heights development project.
Dr Louis noted, "Our ability to deliver multiple high-performing projects simultaneously has been key to our financial success. Pokugara and Pomona City, in particular, continue to exceed expectations, demonstrating strong market confidence in our developments."
WestProp also reported substantial improvements in its gross profit margin, thanks to strategic investments and cost-cutting measures.
The company's major investment in freehold property, plant, and equipment, along with the insourcing of aluminium and glass products, helped reduce construction costs.
This, coupled with better project planning and execution, contributed to the growth in profitability.
The group's focus on streamlining operations has allowed it to manage costs more effectively, contributing to its bottom-line growth. For the half year, WestProp declared an interim dividend of US$1,7 million, a testament to its strong financial standing.
"Our strategy of insourcing key materials that were previously cost drivers has had a significant positive impact on our margins. We are continually looking for ways to enhance efficiency across all our operations," Dr Louis said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
WestProp remains committed to sustainability, as evidenced by the launch of its premier golf estate, The Hills.
This development, which boasts 82 percent open space and green areas, is a testament to the company's focus on eco-friendly construction.
In addition to The Hills, WestProp is advancing several other projects, including the completion of Pomona City flats targeted for later this year, as well as the development of a US$280 million new city, The Hills Lifestyle Estate in Harare, set to launch in 2025.
The company is also in discussions with South African partners for the construction of Zimbabwe's first-ever regional mall, "The Mall of Zimbabwe," which is expected to break ground in the second half of 2024.
"We are laying the groundwork for a sustainable future," Dr Louis said.
"Our vision of putting a billion bricks into the ground by 2050 is still on track, and we are making substantial progress toward that goal."
Despite challenges, the group recorded a net profit after tax of US$4,38 million, with a net profit margin of 31 percent, a drop of 471 percent from 2023, which had a 313 percent profit margin driven by fair value gains recognised on the group's investment properties.
This represents a decline from the 313 percent margin in 2023, which had been artificially inflated by fair value gains on the company's investment property portfolio.
Looking ahead, WestProp remains optimistic. "Our outlook is positive despite the challenges we face," said Dr Louis. "We are excited about the new projects on the horizon and will continue to focus on delivering strong returns for our shareholders."
