Chronicle Editor
Business Reporter
BULAWAYO-headquartered clothing retail giant, Edgars Stores Limited’s manufacturing division, Carousel, has spread its wings into the Botswana market as part of the group’s drive to explore alternative markets and widen earnings.
The group’s business units are Edgars shops, Jet stores, Carousel manufacturing and a financial service firm.
In a trading update for the year ending January 9, the manufacturing and retail outlet said its expansion towards exports is part of its move to explore new business opportunities.
“Total group units sold increased by 4,1 percent from 2,4 million to 2,5 million compared to the same period last year. 2021 saw our manufacturing concern, Carousel, recording its first export sale to Botswana, bearing testament of management’s initiatives to continuously explore alternative markets,” said Edgars.
In the period under review, Carousel recorded a turnover of $334 million up 127,2 percent over prior year.
However, total units sold were down 42,1 percent to 165 000. Demand in the prior period was largely driven by Covid-19 personal protective equipment that included the manufacturing of masks, it said.
“Management has been actively seeking alternative markets, which has seen the division securing and delivering on its first export sales order in the period.
“Investment in various re-tooling and machinists training is ongoing, which will see the division expanding on its product offering as well as improved efficiencies,” said the company.
The group reported revenue of $6.9 billion, which is 82.5 percent up from that achieved in 2020 of $3.7 billion.
Profit before tax of $590 million was a significant improvement from the prior period loss of $290 million.
The firm said trading in foreign currency since April 2020 has allowed its retail chains to improve stock assortments, which in turn increased traffic to stores.
“While a sizeable portion of our cash sales are in foreign currency, we believe that this proportion can be increased through favorable and consistent application of regulatory policies around trading in foreign currency,” it noted.
Total retail merchandise revenue amounted to $5.56 billion representing a 70.1 percent increase from the prior year.
The Edgars chain recorded a turnover of $3 billion up 73.7 percent from the prior year of $1.7 billion with 956 000 units sold, up 8.2 percent from 887.700 in the comparative period.
As for the Jet chain, total sales were $2.5 billion up 78.6 percent from $1.4 billion achieved in the comparative period.
Active account growth increased to 128 000 from 120 000 representing a 6.5 percent growth, which it attributes to various account drive initiatives.
The retail group said taking into account various challenges in the operating environment, it managed to close 2021 with an improved performance.
It reported revenue of $6.9 billion, which is 82.5 percent up from that achieved in 2020 of $3.7 billion.
Profit before tax of $590 million was a significant improvement from the prior period loss of $290 million, it said.
On outlook, the group, which closed the year with 31 stores up from 27 in the prior year, seeks to expand its geographic footprint by opening new stores in strategic locations.
“We will continue to transform our customer experience through updating our stores to world class standards, offering widened merchandise ranges at affordable prices and flexible credit terms,” the group said.
Online Reporter