peter
Harare Bureau
CONGLOMERATE Meikles Limited intends to expand its supermarket segment, trading as TM Pick n Pay, with new stores already in the pipeline as the group consolidates market share.
Like any other sector, the consumer retail sector has been affected by the adverse effects of the Covid-19 pandemic as trading hours were reduced in line with measures to limit the spread of the pandemic.
Market experts have, however, placed their bets on consumer-oriented businesses, which are projected to perform better as Covid-19 induced lockdown restrictions continue to relax resulting in increased economic activity.
This creates scope for retail businesses to work on expansion programmes in anticipation of a boom in consumer demand driven by the growth in agriculture and mining sectors.
Meikles is also looking at refurbishing its stores to improve their ambience and customer experience and the work started in the half year to September 30, 2021.
“Refurbishment of the stores is progressing as planned. During the period under review, the Newlands store was renovated and re-opened in September 2021.
“Two more stores are expected to be completed by the end of this month. In addition, work is under way on new stores that are expected to come on stream during the first half of the next financial year,” said chairman Mr John Moxon.
Last year the group made an investment of $386,6 million towards refurbishment of the TM Pick n Pay stores. This also included the construction of an upmarket mall in Marondera. The group is also working on the re-development of its properties once occupied by its departmental stores across the country, which should be completed by the end of the financial year 2022.
The group closed its departmental stores in Zimbabwe, among them once leading retail brands such as Barbours and Greatermans Stores.
Mr Moxon highlighted the properties, which were previously occupied by the retail segment and have been unoccupied are being redeveloped for occupation by strong tenants. To this end, some properties have been sold.
The development plans of the remaining buildings in Harare, Bulawayo and Masvingo are being finalised for completion in 2022, Mr Moxon said.
During the half year period, revenue at Pick n Pay rose 31 percent to $20 billion compared to $15,2 billion recorded during the same period last year. Units sold grew by 27 percent during the period under review.
Sales units volume accelerated after September 30, 2021 and Mr Moxon said it is expected to result in a stronger financial performance in future months.
Operating profit for the period surged 159 percent to $1,2 billion compared to $463,9 million achieved in the previous period in the prior year.
Overall, the group’s total revenue from continuing operations grew by 28 percent to $20 billion compared to the same period of the previous year primarily due to a strong performance by the supermarket segment.
Group operating profit for the period increased by 156 percent to $1 billion from $391 million in the same period in the prior year. An after-tax profit of $1,6 billion was achieved from $469,2 million in the comparable prior year period driven by investment income and by the growth in operating profit.
Basic and diluted earnings per share surged to 275 cents from 44 cents recorded during the same period last year.
Meikles achieved an increase in liquid financial resources despite the trading environment and continued Covid-19 trading restrictions. Total assets remained flat at $21 billion.
Online Reporter