Diversified listed group, Meikles Limited posted a 21 percent growth in revenue during first quarter to June 2021 due to the easing of lockdown which translated to improved business activity in the economy.
The Group’s agricultural segment, Tanganda Tea Company was classified as a discontinued operation ahead of its unbundling and ultimate listing as a separate entity later this year.
Revenue for the agricultural segment was 41 percent ahead of the same period of the previous financial year in inflation adjusted. This was due to a 3 percent increase in US$ terms from prior year‘s average price of Macadamia nuts.
Macadamia nuts harvested during the period were 65 percent above prior year whilst avocados harvest was 27 percent ahead of the prior year.
“Trading environment during the quarter ended 30 June 2021 was characterized by sustained disinflation that commenced in July 2020 attributable to the exchange rate stability and improved access to foreign currency by manufacturers of goods,” the Group announced.
COVID-19 lockdown restrictions during the period under review were moderate in comparison to the hard lockdown during the same period of last year.
“Resultantly, sales volume growth was achieved across Group operations in comparison to same period last year,” said the Group.
Sales volume at the supermarkets segment increased by 21 percent during the quarter compared to same period of the previous year.
“During the same period of last year, sales volume was adversely impacted by stricter lockdown measures implemented by the Government in response to the outbreak of COVID-19 pandemic,” said the company.
Room occupancy for the hotel segment was 11 percent up from no occupancy during the same period of the previous year. The occupancy was split 66 percent and 34 percent between foreign and local guests respectively.
The hotel was closed due to measures to combat COVID-19 pandemic during the period April to June 2020.
For its Victoria Falls hotel, the Group is banking on the roll out of vaccination programme in the resort city expected to play a key role in confidence building and return of international tourism.
For the agriculture segment, bulk tea production and export sales for the quarter were 15 percent below the same period of the previous year. Tea harvesting was affected by limited availability of labour as focus was assigned to harvesting of macadamia nuts and avocados during the period under review.
