OK Zim ups half-year capex

Oliver Kazunga, Senior Business Reporter

RETAIL giant, OK Zimbabwe recorded an increase in capital expenditure to $51,5 million for the six months ended September 30, 2019 from $7,5 million spent during the same period the previous year.

In a statement accompanying financial results for the period under review, OK Zimbabwe chairman Mr Herbert Nkala attributed the increase in capital expenditure to the refurbishment programme.

“Capital expenditure for the period was $51,5 million, up from $7,5 million for the comparative period as the group continued with its refurbishment programme,” he said.

OK Zimbabwe has 48 outlets across the country in major towns and cities. Of late, the retail chain’s stores have been undergoing a major facelift, which management believes is essential to improve ambiance, refresh facilities and enhance the equity of OK Zimbabwe’s brand. Turning to the group’s performance, Mr Nkala said revenue for the half year improved by 237,4 percent to close the reporting period at $1,1 billion, having increased from $330,1 million in the comparative period.

Profit before tax of $185 million was 1,498 percent up on prior year’s $11,6 million, while profit after tax increased by 1,463,5 percent to $131,9 million from $8,4 million in prior year.

“Overheads growth was restricted to 229,1 percent, which is below the revenue growth of 237,4 percent.

“Overheads increases were attributable to, among others, fuel for generators and vehicle fleet, repairs and maintenance costs, staff costs, bank charges, contingent rentals and interest on lease liability arising from the adoption of International Financial Reporting Standard 16 (IFRS 16), Leases,” he said.