OK revenue up 5pc in Q1

Group chief executive Mr Willard Zireva told the company’s annual general meeting that the growth was slightly below their aggressive budget, which took into account, anticipated national Gross Domestic Product growth of 5 percent.

“It is generally accepted that the country may actually have experienced zero growth or deflation during the period, but we, however, see improvement as the year progresses,” he said.

Mr Zireva said the group’s focus was to effectively control shrinkage as well as tighten management of other overheads. “Profit growth for the quarter in line with sales growth should improve as we go forward with all the initiatives which are in place or being worked on. OK Mart growth for the quarter was slightly below the company average mainly affected by lower sales in liquor.

Mr Zireva said management would continue in its efforts to improve the margin through better sourcing.
The group recently signed an agreement with a South Africa-based company, Kawena, to enable Zimbabweans resident in South Africa to purchase goods for family and friends back home.

The partnership hopes to tap into the estimated US$500 million per year, which is remitted by Zimbabweans in South Africa
Mr Zireva said the arrangement had very exciting opportunities and also contributed to reduction of the country’s negative trade balance with South Africa.

He added that the group had also gone into a distributorship arrangement with a blanket manufacturer, Aranda from South Africa, and hoped this will add value to the company. 
“We are the sole distributors of their product in the country and we are also adding value to the product to our revenue,” he said.

Mr Zireva said store refurbishment and other capital expenditure programmes were ongoing using funds from internal resources.
Building work was in progress at the Hwange store with a target opening by end of September while work was in progress to move to a bigger space in Eastlea.

Refurbishment work was planned for Waterfalls, Bindura and Houghton Park while partial work would be done in Gweru and Mutare. The company would, however, be moving out of the Rezende Street store at the end of July. — New Ziana.