HARARE, November 4 (The Source) – Retailer, OK Zimbabwe’s after tax profit for the half-year period to 30 September 2016 increased 87.1 percent to $2,3 million from $1,2 million in 2015 largely on lower costs.
Chief executive Willard Zireva told an analyst briefing late Thursday that despite a worsening macro-economic environment, the market was competitive enough to generate increased revenues and profitability.
During the period, revenue went up 2.3 percent to $218,6 million from the $213,6 million posted in the comparable period in prior year while gross profit grew 139.2 percent up at $3,1 million from $1,3 million in the previous year.
“Gross margins improved due to efficient procurement while operating costs were managed down to achieve improved profitability. Working capital has improved significantly, reflecting sufficient liquidity in the business to meet the group’s operating requirements,” he said.
Zireva said OK, Zimbabwe’s largest retailer with 64 outlets, has a stock out turn of 45 days, which places it in a safer position if the supply situation deteriorates further.
In the six months, overheads dropped to $33 million from $34,2 million previously as group wide initiatives to contain costs continued. Capital expenditure for the period was $5,5 million, up from $3,9 million in prior year.
Chief operating officer, Albert Katsande said the group opened two OK Mart outlets during the six-month period, in Gweru on July 17 and Victoria Falls on September 1. It also planned to open two more outlets in Houghton Park, Harare and in Chipinge in the second half of the year.