OK Zimbabwe profit up 121%

Zimbabwe Stock Exchange-listed retail concern, OK Zimbabwe, saw its net earnings more than doubling to $5,1 million in the six months ended September 30, attributed to a surge in revenue despite a growth in overheads.

BY BUSINESS REPORTER

In the same period last year, profit-after-tax was $2,3 million.

Revenue grew by 22,6% to $268 million up from $218,6 million realised in the comparable period last year.

Overheads were 16,8% higher than the same period last year at $38,6 million, attributed to staff costs, utility charges, bank charges, and rentals.

OK Zimbabwe said its performance was an improvement on the results reported at the March 31 2017 year end.

“This improvement is attributed to adequate product availability, successful promotions and continued focus on customer service which led to meaningful sales growth,” it said in a statement accompanying the financial results.

The retail concern was debt-free in the period under review, with internally generated resources adequate for business operations and capital expenditure.

The group declared an interim dividend of 0,20 cents to be paid to shareholders.

In the outlook, OK Zimbabwe said it would continue to explore opportunities to grow the market share through enhanced sales generation that “will increase its efforts to contain costs and improve profitability”.

“Refurbishment work is continuing and will soon be completed on at least four stores before the end of the financial year and at least one new store will be opened soon in Harare,” the group said.