OK Zimbabwe records 19% revenue growth

OK Zimbabwe records 19% revenue growth
Published: 31 July 2017
ZIMBABWE'S largest retail group, OK Zimbabwe Limited said revenue for the first quarter of financial year 2018 grew 19 percent on the back of major promotions during the quarter.

OK Zimbabwe runs one of the country's biggest promotions, the OK Grand Challenge.

Briefing shareholders at the firm's annual general meeting in Harare yesterday, chief executive Mr Alex Siyavora said performance was ahead of budget with positive growth over prior year.

In the full year to March 31, 2017, OK Zimbabwe's revenue grew by 8 percent above prior year
"The growth we reported at year end of FY17 is continuing. Performance is ahead of budget, with positive growth over prior year.

"Our promotions, the major one being The Grand Challenge Jackpot Promotion, were successful and contributed meaningfully to the quarter's performance. Gross margins have also been maintained," said Mr Siyavora.

The retail giant has also indicated imported goods have narrowed to some extent because of difficulties with international payments, but the supply of goods remains adequate to sustain the required level of performance. Additionally, the recent ban on kaylite packaging by Environmental Management Agency (EMA) resulted in some disruptions in the business briefly but Mr Siyavora said it was still difficult to ascertain the cost of the ban until the alternative packaging was available.

The firm was holding $60 000 worth of stock at the time of the announcement of the ban, although a 90-day reprieve was given to clear stocks.

"The kaylite ban disrupted business for about four days for us, the kind of offerings in the take aways are soupy dishes, you need something which can hold the soup there are no alternatives currently so we stopped serving anything like that as we were negotiating with EMA.

"The alternative packaging to come has not yet affected us as we have been given a reprieve, but we estimate it will affect us, we will assess the cost when we know the alternative," said Mr Siyavora.

OK Zimbabwe is the leading supermarket retailer with business covering three major categories comprising groceries, basic clothing and textiles as well as house-ware products trading under three brand, OK stores, Bon Marche stores and OKMart.

Meanwhile, OK Zimbabwe closed last Friday's trade on the Zimbabwe Stock Exchange at 10, 2 cents.
- online
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