Online Reporter
Nelson Gahadza
Senior Business Reporter
Meikles Limited narrowed its full-year loss for the year ended February 28, 2026, as improved cost discipline, stronger operating efficiencies and a more stable macroeconomic environment helped the diversified group return its core supermarket business to operating profitability, despite subdued consumer spending.
Group chairman Fayaz King said the company’s operating performance improved significantly during the year, with stronger margins, positive operating cash flows and lower losses positioning the business for sustainable growth.
Inflation-adjusted revenue eased by 4 percent to ZiG12,56 billion from ZiG13,10 billion in the prior year, largely reflecting lower sales in the supermarket business, which contributed about 98 percent of total group revenue.
However, improved performances from the properties, hospitality and security services businesses partly cushioned the decline.
The group reduced its loss for the year by 33 percent to ZiG183,8 million from ZiG274,8 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 40 percent to ZiG258,2 million. Operating cash generation also strengthened sharply, to ZiG229 million from ZiG58 million, underscoring the resilience of the group’s underlying operations.
“The year under review marked a significant improvement in the Group’s operating performance, against a backdrop of increasing economic stability and a more supportive trading environment.
“Despite continued pressure on consumer spending and intense competition from the informal sector, management delivered improved margins, a substantial reduction in losses, positive operating cash flows, and a return to operating profitability within the Group’s core supermarket business,” he said.
He said the achievements reflected disciplined execution of strategic priorities and positioned the group for sustainable growth.
The group’s flagship TM Pick n Pay supermarket business recorded a notable turnaround during the year, returning to operating profitability despite weaker consumer spending.
Although supermarket revenue declined by 5 percent to ZiG12,3 billion, sales volumes increased by 6 percent, reflecting stronger customer traffic and market share gains in the second half of the year.
Gross profit margin improved to 28 percent from 23 percent, while the segment posted an operating profit of ZiG63,7 million, compared with an operating loss of ZiG516,3 million in the previous year.
The retailer also opened a new outlet in Shurugwi and funded capital expenditure of US$3,2 million entirely from internally generated cash flows, without resorting to bank borrowings.
Within the hospitality division, operational performance remained stable, as occupancy held at 39 percent, while a 9 percent increase in average room rates lifted revenue per available room by 8 percent.
Profit after tax improved to ZiG7,9 million.
The properties business recorded 25 percent revenue growth in US dollar terms, driven by higher third-party rentals and improved utilisation of its portfolio.
A major milestone was the redevelopment of the group’s flagship Bulawayo property, which was generating about US$60 000 in monthly rental income by year-end.
Meanwhile, the security services division posted 3 percent revenue growth in US dollar terms, as it continued expanding its external customer base.
Looking ahead, Mr King said the group was entering the new financial year with cautious optimism, supported by improving macroeconomic conditions and encouraging first-quarter trading.
He said supermarket revenue had already grown by 13 percent in US dollar terms during the first quarter, underpinned by a 22 percent increase in unit sales, while the properties division recorded 64 percent growth, following improved occupancy and contributions from the refurbished Bulawayo property.
“The Group enters the new financial year with cautious optimism. The improving macroeconomic environment, combined with initiatives implemented over the past year, provides a platform for continued operational improvement,” Mr King said.
He added that the group was evaluating opportunities to expand its supermarket branch network and remained confident of improving performance.
