OK Zimbabwe Revenue 22.6% Up

Leading retail giant, OK Zimbabwe revenue for the six months ended 30 September 2017 improved by 22.6% to US$268.0 million from the US$218.6 million in prior year with profit after tax shooting 121 percent up during the same reporting period.

Group chairman David Lake said the positive results were as a result of adequate product availability, successful promotions and continued focus on customer service which led to satisfactory sales growth.

“Profit before tax of US$7.0 million was 124.2% upon prior year’s US$3.1 million, while profit after tax increased by 121.8% to $5.1 million from US$2.3 million in 2016.

“Overheads of US$38.6 million were higher than prior year’s US$33.0 million with the increase attributable to, among others, staff costs, utility charges, bank charges and rentals. The cost lines that increased significantly are those that vary with increases in sales generated.

“The Group operated free of debt as internally generated funds were adequate for business operations and capital expenditure. Capital expenditure for the period at US$4.9 million was marginally lower than prior period’s US$5.5 million, but was according to plan,” said Lake.

He added that the group encountered intermittent shortage of commodities in recent months due to foreign currency shortages adding that price levels transitioned from deflation to inflation with year on year inflation going up to 0.78%.

Meanwhile the directors have recommended an interim dividend of 0.20 cents per share to be paid to shareholders on or about the 1st of December 2017.

 

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