WestProp records 80% revenue surge amid residential property boom

Published: 10 May 2025
Listed property developer WestProp Holdings Limited has announced a substantial 80 percent rise in revenue for the financial year ended December 31, 2024, propelled by surging demand for residential real estate and strategic project execution.

In a statement accompanying the company's abridged audited consolidated financial results, WestProp board chairperson Dr Michael Louis revealed that revenue jumped from US$16.09 million in 2023 to US$29.05 million in 2024. The increase, he said, was primarily driven by the performance of key residential projects.

"Pomona City Residential Estate led the charge with US$15.61 million in revenue, followed by Pokugara Residential Estate at US$9.42 million and Millennium Heights at US$4.02 million," said Dr Louis. "The higher revenue reflects increased demand for residential real estate and the successful progression in project execution."

Gross profit rose by 90 percent, from US$5.88 million to US$11.15 million, reflecting improved operational efficiencies and a significant reduction in the cost of sales to US$17.89 million, down from US$10.21 million the previous year.

Dr Louis attributed part of the group's profitability to a US$18.84 million fair value gain on investment property, although this was notably lower than the US$49.51 million gain recorded in 2023, signalling what he described as a stabilised real estate valuation environment.

In line with its long-term strategy, WestProp commissioned TrustProp Aluminium, a glass and aluminium fabrication facility to serve both internal projects and external clients. The move is aimed at enhancing cost efficiency and product quality within the construction supply chain.

Further strengthening its supply chain integration, the group also launched BrickFusion Manufacturing, a brick-moulding factory expected to alleviate supply delays while ensuring consistent material quality. The factory forms part of WestProp's "One Billion Bricks by 2050" vision.

Despite strong revenue growth, net profit for the year dipped slightly to US$18.26 million, down from US$39.43 million in 2023. Dr Louis said the drop was largely due to the reduced fair value gains and an increase in operating expenses, which rose to US$8.64 million from US$5.18 million, in line with the company's expansion strategy.

"Nonetheless, profit before tax remained robust at US$23.60 million," he noted. "Our increased investments, new subsidiary acquisitions, and expanded project pipeline - now valued at US$175 million - underscore our commitment to scaling sustainably."

Dr Louis said WestProp's ability to weather macroeconomic shifts while identifying high-growth opportunities reflects its resilience and strategic foresight in Zimbabwe's evolving property market.
- the herald
Tags: Property,

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