Prince Sunduzani, Business Reporter
RETAIL giant, OK Zimbabwe Limited, has posted an impressive $16,6 million profit for the full year period ended 31 March 2018 up from $6,1 million recorded in the same period last year.
Revenue grew 23,4 percent to $582,9 million dollars from $427,4 million in the prior year.
Despite the challenging macro-economic climate dominated by foreign currency shortages, which affected international purchases, the group secured positive financial results as a result of its focused growth in sales through product availability, improved customer service and tighter internal controls.
In a statement accompanying the group’s audited results for the period, issued yesterday, group chairperson, Mr David Lake, revealed plans to open more outlets and refurbish existing branches so as to buttress OK’s drive to generate more profits.
“Revenue for the year improved by 23,4 percent to close the reporting period at $582,9 million having increased from $472,4 million in the prior year. Profit before tax of $23,6 million was 165,6 percent up on prior year’s $8,9 million, while profit after tax increased by 174,6 percent to $16,6 million from $6,1 million in prior year,” said Mr Lake.
“During this period, the operating environment continued to be characterised by inadequate foreign currency reserves necessary to settle international obligations and shortages of cash required for transactions.
“The cost of sourcing foreign currency had the inevitable effect of increasing prices, with Zimstat reporting year on year inflation increase of 0, 21 percent.”
The group chair said overheads grew by 16,6 percent due to staff costs, utility charges, bank charges and rentals. He also indicated that the company operated free of debt as internally generated funds were adequate for working capital and capital expenditure.
OK opened two new stores in Harare during the year, and expanded OK Jason Moyo in Bulawayo among others.
The group closed down OK Cameroon Street and OK Wynne Street in Harare as part of the group’s rationalisation initiative to improve efficiency.
“Capital expenditure for the year was $15,5 million, up from $10,9 million in prior year as the group continued with its refurbishment exercise to improve existing facilities as well as expand trading footprint,” said Mr Lake.
He said the country’s economic outlook was encouraging as the Government has put emphasis on economic resuscitation and growth.