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Mr John Moxon

Oliver Kazunga, Senior Business Reporter
MEIKLES Limited revenue for the year ended March 31, 2017 clocked $457.6 million up from $453.6 million in the prior year boosted by an “exceptional” performance of the group’s supermarkets.

In a statement accompanying the group’s financial position for the period under review, chairman Mr John Moxon said despite the growth trajectory recorded through supermarkets, revenue for the other segments declined due to adverse trading conditions.

“Group revenue for the year ended March 31, 2017 amounted to $457.6 million (2016: $453.6 million), boosted by an exceptional performance by the supermarket segment. Revenue for the supermarkets grew by five percent defying the negative effect of depressed consumer demand that prevailed during the entire financial year,” he said.

Mr Moxon said the supermarket segment trading as TM and Pick n Pay had an eventful financial year with climax being the re-opening of the refurbished and rebranded flagship branch at Village Walk in Borrowdale.

“Despite the biggest branch TM Borrowdale operating under renovations for a greater part of the financial year, the segment achieved yet another set of exceptional results for the financial year ended March 31, 2017,” he said.

“Revenue for the year grew by five percent to $414 million relative to the prior year. The segment has achieved revenue growth year-on-year since 2013, spurred by branch network expansion and upgrades.”

Gross profit for the year improved by two percentage points due to improved efficiency in procurement coupled with reduction in wastage and shrinkage.

“Operating costs grew by seven percent due to incremental costs of new branches as well as increased depreciation on new equipment,” Mr Moxon added.

On the agriculture segment, he said revenue went down by six percent to $21.2 million from $22.4 million in 2016. The decline in revenue was due to a 20 percent fall in tonnage of bulk tea exports.

“Prior year’s tonnage of bulk tea exports was higher due to build-up of stocks during the period from December 2014 to March 2015, when exports were on hold pending the granting of the Rainforest Alliance certification,” said Mr Moxon.

The group’s hospitality sector revenue for the year declined by seven percent to $14.7 million weighed down by the fall in room occupancy and average room rates in Harare.

The rebound in international tourist arrivals in Victoria Falls assisted in containing the decline in the segment’s revenue to a single digit rate. Room occupancy at The Victoria Falls Hotel grew by 2.31 percentage points to 55.02 percent.

The stores segments revenue for the financial year ended March 31, 2017 was $9 million reflecting a decrease of 59 percent over last year. On the financial services sector, Mr Moxon said the Meikles Financial Services faced a mixed trading year to March 31, 2017.

The highlight for the year was the rapid uptake of the MyCash Card, the low-cost, multi-featured bank account, which was launched in early 2016.

As at March 31, 2017 there were in excess of 150 000 account holders covering all demographic groups.

Meikles Guard Services continued to expand its customer base outside the group companies and secured 23 additional posts during the period under review.

“Total number of posts at March 31, 2017 stood at 268, of which 220 were posts within the group and 48 posts were from organisations outside the group. We await the awarding of security tenders that MGS was recently invited to submit. The tenders lodged are for various security organisations including embassies, corporates and financial institutions,” he said.

@okazunga