adminUS$185,61 million for the same period in the prior year, the company said in its half year financial statement yesterday. Total operating expenses increased by 22,5 percent to US$32,75 million from US$23,73 million in the prior year.
OK said the increase in overheads was partly caused by rise in employee benefits as more employees were engaged to man the two new stores opened in the latter part of the prior financial year.
Insurance costs also increased significantly because of growth in asset values. Costs incurred in moving products to the branches increased consequent upon greater use of the distribution centre for warehousing and supply of imported products.
The cost of borrowing increased to US$396 000, up from a insignificant US$1 500 in the prior period, as the convertible loan from Investec and other bank facilities were accessed.
Capital expenditure was US$7,35 million compared to US$6,96 million in the prior year and was mainly in respect of replacement of plant and equipment.
Online Reporter