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MEIKLES Limited group says its revenue grew by 34 percent to $66 billion in the full year period to 31 March from $49,1 billion in 2021 mainly driven by the increase in sales units within the supermarket segment.
In a financial statement for the year released this week, chairman Mr John Moxon said the lifting of most of Covid-19 restrictions and its tactical marketing campaigns led to the growth in sales volume over the prior year.
“Revenue grew by 36 percent to $66 billion. The sales growth was due to an increase of 26 percent and 11 percent in units and customer transactions respectively,” he said.
“Our ability to constantly replenish stocks throughout all the branches demonstrated the versatility of our supply chain and logistics networks.”
According to the trade update, operating profit increased by 54 percent to $2,8 billion from $1,9 billion in the previous year. Strategic investment in stocks, margin control and cost saving initiatives is attributed to the growth in operating profit.
Commenting on the hospitality division, Mr Moxon said revenue increased to US$2,9 million from US$342 000 last year.
Room occupancy for the year grew to 16,77 percent from 2,45 percent last year due to the easing of both local and international Covid-19 stringent travel restrictions during the second half of the financial year.
“Profit after tax improved to $196 million from a loss of $212 million in the previous year. The first phase of Victoria Falls Hotel refurbishment was at an advanced stage at the end of the reporting period,” said Mr Moxon.
“The refurbished rooms are scheduled to open for bookings by the end of August 2022. The group’s investment in hospitality has now been reduced to a single operation.”
On overall financial performance, Mr Moxon noted that gross profit margin increased by two percentage points to 25 percent from 23 percent in the previous year.
Inflationary pressure on operating costs offset the increase in the gross profit margin and as a result the operating profit margin was maintained at three percent, he said.
Operating profit for continuing operations was $2,2 billion, up 48 percent from $1,5 billion in the prior year.
Profit after tax for continuing operations, which excludes profit on the distribution of subsidiary grew by 461 percent to $3,4 billion from $599 million the previous year.
Meanwhile, Meikles said during the period under review major strategies relevant to the group were implemented successfully and they relate to the unbundling and listing of Tanganda and the sale of the group’s 35 percent shareholding in Mentor Africa (Proprietary) Limited.
The sale of the shareholding in Mentor Africa has resulted in substantial amount accruing to the Group.
“The group’s 35 percent shareholding in Mentor was sold for US$19,08 million. The sale resulted in the investment being uplifted from the previous carrying value to the amount of the sale proceeds, which has been included in other comprehensive income for the year,” said Mr Moxon. “The group achieved commendable profit growth.”
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