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Oliver Kazunga, Senior Business Reporter
RETAIL giant, OK Zimbabwe says its short to medium-term prospects are hinged on the duration and severity of the Covid-19 pandemic with volume performance for the first quarter already showing a decline.

Zimbabwe, like the rest of the world has been affected by the adverse effects of the lockdown measures induced by the outbreak of Covid-19.

The pandemic, which was first detected in China towards the end of last year has spread across the world. To date about, 8,92 million people around the world have been infected with hundreds of thousands of lives lost. In a statement accompanying OK Zimbabwe financial results for the full year period ended March 31, 2020, the retail giant said: “The medium term prospects of the group depend on the duration and severity of the Covid-19 pandemic, which will impact the timing of the return to full normalcy of operations.

“Volume performance for the first quarter of the current financial year will therefore show a significant decline from prior year.”

The retail group is operating during the lockdown period, although for reduced trading hours. As part of measures to mitigate against the spread of Covid-19, OK Zimbabwe said while recommended safety guidelines were being implemented to protect staff, customers, suppliers and other stakeholders, management was equally seized with implementing measures to ensure viability of operations.

“The Covid-19 pandemic has disrupted supply chains and the group will work closely with suppliers to ensure adequate product supply.

“Hyperinflation and a constrained sales performance make cost control a key area of focus for management in order to protect margins,” said the retailer.

During the year ended March 31, 2020, OK Zimbabwe said revenue for the period grew by 464 percent to ZWL$4,5 billion from ZWL $801,9 million in the prior year.

Profit before tax of ZWL$788,6 million was 1,068 percent up on prior year’s ZWL$67,5 million, based on adjusted inflation figures, while profit after tax increased by 1,050 percent to ZWL $566,2 million from ZWL $49,2 million in prior year.

Overheads grew by 427 percent, 37 percentage points below growth in revenue. The group cited generator fuel costs for alternative power, electricity costs, maintenance costs and spares, bank charges and rentals as the major overheads’ growth drivers. It said significant increases were noted in expense lines directly linked to revenue while internally generated funds were adequate to fund working capital and capital expenditure requirements, hence no borrowings were utilised in the year.

Capital expenditure for the year was ZWL$236,4 million, up from ZWL$25,8 million in the prior year as the group continued with its refurbishment programme.

The retail giant has declared a final dividend of 9 ZWL cents per share to be paid to shareholders on or about the 3rd of July 2020.

“The final dividend brings the total dividend declared for the year to 13 ZWL cents per share,” it said. — @okazunga