Chronicle Editor
Oliver Kazunga, Senior Business Reporter
DIVERSIFIED group, Meikles Limited has recorded a 11 percent increase in room occupancy on its hotel segment during the quarter ended June 30,2021.
During the same period last year, due to national lockdown and travel restrictions the country embarked on to curb the spread of Covid-19, the group’s hotel occupancy rate was zero percent.
In a trading update for the period under review, Meikles said the occupancy was split 66 percent and 34 percent between foreign and local guests respectively.
“Room occupancy for the hotel segment was 11 percent, up from no occupancy during the same period of the previous year.
“The occupancy was split 66 percent and 34 percent between foreign and local guests respectively.
“The hotel was closed due to measures to combat Covid-19 pandemic during the period April to June 2020,” said the diversified company.
The group expressed optimism that the roll out of the vaccination programme in Victoria Falls will play a key role in confidence building and return of international tourism.
Meikles revenue for continuing operations grew by 21 percent and 198 percent in inflation adjusted and historical cost terms respectively.
On the agricultural segment, it said the unit was classified as a discontinued operation and an asset held for distribution to shareholders in March.
“Revenue for the agricultural segment was 41 and 248 percent ahead of the same period of the previous financial year in inflation adjusted and historical cost terms respectively,” said the group.
Bulk tea production and export sales for the quarter were 15 percent below the same period of the previous year.
“Tea harvesting was affected by limited availability of labour. Most of the available labour was assigned to harvest macadamia nuts and avocados during the period under review,” it said.
“The segment will invest in motorised tea harvesting machines as the shortage of labour is bound to recur during the same period going forward.”
The average selling price per kilogramme firmed up by three percent in US$ terms from prior year’s average price.
Macadamia nuts harvested during the period were 65 percent above prior year while avocados harvest was 27 percent ahead of the prior year.
Last year’s harvest was reflective of the impact of the two-year drought experienced prior to the just ended agricultural season.
Group operating profit margins exceeded the same period of last year in both inflation adjusted and historical cost terms.
“Sales volume at the supermarkets segment increased by 21 percent for the quarter relative to same period of the previous year,” said Meikles.
During the same period of last year, sales volumes were adversely impacted by stricter lockdown measures implemented by the Government in response to the outbreak of Covid-19 pandemic.
On the outlook, Meikles said there was optimism that economic growth for this year will exceed initial forecast on account of higher-than-expected agricultural output.
“However, Covid-19 downside risks remain and continue to evolve,” it said. — @okazunga
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