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John Moxon

MEIKLES Limited has recorded a 15 percent increase in sales for the five months ended August 2015, executive chairman John Moxon said in a trading update. Trading income increased by 20 percent while sales in the TM supermarkets increased by 13 percent.

“The TM business is doing well and we want to increase the number of stores and by January we’ll have eight stores by the end of January 2016,” he said.

In terms of hotel business Meikles Harare recorded four percent increase in occupancy, while turnover rose five percent.

Victoria Falls Hotel occupancy was up two percent during the same period.

“Sales in the hotel sector were down up to 16 percent due to the VAT tax, which was imposed by the government to foreign visitors,” he said.

He added that the Tanganda business expansion programme “is well on course.”

“We’ve 800 hectares of Macandania nuts, 500 hectares of avocado pears and 400 hectares of coffee, in addition to our tea. And we’ll be soon expanding the sectors.”

He added that the prices of tea has remained flat because of surplus coffee in Kenya, but expects that once the Kenya surplus is out prices should start improving.

The group also said it is in the process of refurbishing its tea manufacturing plant in Mutare, which will reduce the price of tea locally and also help to compete on the international market.

Meikles is targeting to expand its tea business into South Africa.

“We’re targeting South African for the Tanganda business which is a very competitive market, but we are beginning to make inroads,” he said. — BH24