Meikles quarterly revenue up 88%

Business Reporter
DIVERSIFIED listed group, Meikles Limited Group, has posted revenue growth of 88 percent and 354 percent in inflation adjusted and historical cost terms respectively for the quarter ending 30 June.

In its latest trading update, Meikles said all operating subsidiaries generated positive cash flows during the period under review and that its financial stability remains strong, supported by significant US$ cash balances.

Meikles highlighted that in inflation adjusted terms, profit before tax was 79 percent up on the same period of the previous year.

Growth in profit before tax was 791 percent in historical cost terms, boosted by exchange gains realised on US$-denominated cash balances held by the group’s subsidiaries.

“The group fared well on volume, revenue, and profit growth despite the tough trading conditions. Sales volume for the supermarket grew by 39 percent for the period compared to the same period in the previous financial year,” said the company.

“Stock levels in the stores remain adequate despite disruptions in the supply chain arising from both international and local factors.

Room occupancy for the hospitality segment increased from 11 percent to 35 percent, a growth of 24 percentage points in comparison to the same period in the previous year.”

Meikles said the hospitality segment was benefiting from the continued easing of both local and international Covid-19 restrictions.

That saw the average room rate and revenue per available room grow by 36 percent and 327 percent in US$ terms respectively.

“The guest’s mix for the period was 90 percent foreign and 10 percent local,” it said.

The group is optimistic about its prospects despite the evolving challenges in the operating environment.

To that end, it noted that both expansion and replacement capital expenditure plans continue to be implemented.