OK Zimbabwe records revenue growth

Judith Phiri, Business Reporter

LISTED giant retail group, OK Zimbabwe revenue increased by 2.2 percent for the first quarter ending June 2024, compared to the same period last year while lauding a measure of stability brought by the introduction of the Zimbabwe Gold currency (ZiG).

According to a trading update, group company secretary, Mrs Margaret Munyuru said they also recorded a growth of volumes during the same period.

“Revenue increased by 2.2 percent for the first quarter that ended June 2024 compared to same period in prior year. USD collections, however, dropped significantly from fiscal year 2024 (FY2024) last quarter and fiscal year 2025 (FY2025) first quarter as most consumers were now using ZWG,” she said.

“Volumes increased by 20.2 percent for the quarter ended June 30, 2024 compared to the same period in prior year. The growth was mainly driven by improvement in the performance of the OK Grand Challenge promotion, which marked the inaugural participation of the Group’s OK Mart stores.”

She said the success of the promotion was further bolstered by the ongoing support from their key partner suppliers, who played a crucial role in its execution.

Mrs Munyuru said additionally, the stability of pricing during this period contributed positively to volume recovery, as customers responded favourably to the group’s commitment to fair pricing practices.

“The introduction of the new ZWG brought with it a measure of stability. This resulted in year-on-year inflation declining from 57.48 percent in April 2024 to 3.76 percent by June 30, 2024,” she said.

“The domestic economy has remained on a growth trajectory and the group continued to position itself to seize opportunities from the increased consumer spending. Whilst the liquidity challenges impacted trading during the period, the Reserve Bank of Zimbabwe (RBZ) increased ZWG notes and coins in circulation, easing change shortages and has taken further steps post the quarter to curtail liquidity constraints.”

She said despite the significant increase in volumes, sales values increased marginally as a result of the growth in the contribution of bulk product sales that carry a lower unit price.

Mrs Munyuru said this resulted in an increase in basket size of 28 percent against a customer count decline of 6.8 percent.

Going forward, she said: “The fiscal and monetary measures being implemented by the Government are highly commendable. The group remains committed to delivering value to its shareholders by focusing on executing fair pricing, expanding market presence and optimising operational efficiencies while prioritising customer satisfaction for long-term sustainability.”