Meikles Limited Reports Strong Financial Performance and Growth

MEIKLES Limited has assured shareholders of its strong financial position, affirming that planned capital expenditures for the year are being executed as scheduled.

In a trading update for the third quarter that ended 30 November 2024, the group reported a 54 percent surge in revenue for the quarter, driven by favourable exchange rate movements and sales volume growth across all segments.

Group revenue for the nine months increased by seven percent, marking a recovery from the 20 percent decline recorded for the six months ended 31 August 2024. The group achieved a profit after tax of ZWG 73,4 million for the quarter, a significant turnaround from the ZWG 4.5 million loss reported in the same period last year.

For the nine months, profit after tax grew by 87 percent to ZWG 67.9 million, rebounding from ZWG 5.6 million in the preceding six months that ended 31 August 2024.

All operating subsidiaries generated positive cash flows during the period under review, with the group highlighting its robust financial stability, underpinned by a strong US dollar cash balance in its offshore subsidiary.

With its solid financial footing, the group expressed confidence in its ability to adapt to the evolving operating environment.

“Despite the challenges of the evolving operating environment, the Group is optimistic about its prospects. We are confident in the Group’s ability to adapt. The capital expenditure plans for the year continue to be implemented, as the Group has adequate financial resources,” the company said.

The supermarket segment recorded an eight percent increase in sales volume for the quarter and a two percent rise for the nine months. Management maintained consistent stock availability across all stores despite the challenging trading environment.

Revenue collected in US dollars during the quarter remained stable at 19 percent, consistent with the previous year. For the nine months, the percentage of USD revenue increased to 21 percent, up from 17 percent in the prior year.

In the hospitality segment, room occupancy improved to 44 percent for the quarter, up from 42 percent the previous year. Occupancy for the nine months also stood at 44 percent, compared to 41 percent last year. The average room rate and revenue per available room for the nine months rose by two percent and nine percent, respectively.