adminlargely driven by increased credit sales and improved production from its manufacturing unit.
Turnover came in at US$20,6 million during the period under review, up from US$10,3 million achieved during the same period last year, its half-year financial statements released yesterday showed.
Basic earnings per share were US20c, from a loss of US25c per share in the 2010 comparative period.
The firm’s trading profit grew 1 028 percent to US$2,3 million in the six months.
While borrowings did not grow significantly at US$13,79 million, financing costs had a large impact on profit after tax, which rose 180 percent to US$495 872 from a US$617 722 loss in the prior year.
“The group has performed quite well especially on the credit side although they are still behind other retailers who re-introduced the credit scheme earlier,” said one dealer with one of the leading stockbroking firm.
“But, you will notice that despite the great improvement on the credit side, their manufacturing unit is still struggling.”
Edgars, which operates 34 shops countrywide, re-introduced credit facility in early 2009 when the country adopted the multi-currency system.
Most retailers in Zimbabwe had stopped credit schemes due to hyperinflation, which stood at 232 percent at the official last count in June 2008.
Edgar’s customer accounts grew to 133 598 from 111 199 at the end of last year.
The group is targeting customer accounts to exceed 150 000 at the end of the year, a 320 percent jump since 2009 with an estimated 2 000 accounts being opened every week.
Account growth was the main leg of recovery but the current figure is still far from 234 600 in 2006. Average collections remained healthy at 25 percent for the period, peaking at 29 percent in June.
Productivity in the manufacturing unit rose 33,5 percent from a year earlier.
Measures have been put in place, which should see an improvement in the second half but will not offset the first half-year losses.
Through the Edgars and Express Mart brands, the group operates 34 stores (21 Edgars, 12 Express) compared with 83 during the height of the economic boom in the late 90s.
Its manufacturing arm, Carousel is also referred to as the Edgars Industrial Park.
Having recently opened a state-of-the-art Edgars Store at Joina City shopping mall, the group is looking at opening more stores mainly in Harare.
Edgars is one of the best performing stocks on the ZSE.
This year, it gained 142 percent.
Online Reporter