Chronicle Editor
Senior Business Reporter
RETAIL chain, OK Zimbabwe says revenue for the year ending March 31 grew by 34.7 percent to $79,9 billion from $59,3 billion in the prior year and plans to expand its footprint.
In its annual report for the year ended 31 March 2022, the Zimbabwe Stock Exchange-listed group said despite several operational challenges that included Covid-19 pandemic and the ongoing Russia-Ukraine conflict effects that disrupted global supply chains and intermittent foreign currency shortages, profit after tax grew by 48,9 percent to $2,8 billion from $1,9 billion in prior year.
“Sales volume grew by 22,7 percent over prior year. In inflation-adjusted terms, revenue for the year grew by 34,7 percent to $79,9 billion from $59,3 billion in the prior year. Profit before tax of $4,8 billion was 38,5 percent above prior year’s $3,5 billion while profit after tax grew by 48,9 percent to $2,8 billion from $1,9 billion in prior year,” it said
The retail group said despite the challenges, it plans to implement its growth strategy and focus on extending reach through store expansion and store refurbishment programme and improvement in supply chain efficiencies.
In the period under review, the retail outlet operated a network of 68 stores that are spread across the country.
Capital expenditure for the year was $3,1 billion up from $2,1 billion in prior year.
The bulk of the capital expenditure was on refurbishment of stores and the opening of new ones.
Two new stores namely OK Banket and OK Mart Chivhu, were opened in the second half of the financial year and are expected to contribute meaningfully in the coming years.
“Refurbishment of stores remains a central part of the Group’s strategy of regularly refreshing our facilities and ambience, which subsequently improves the equity of our store brands. Refurbishments were completed at OK Masvingo, OK Chinhoyi, Bon Marché Avondale, OK Mbare and OK Queensdale,” it said.
Growth was sustained in value-added services with forex earnings supported through the expansion of the domestic remittance service across stores.
This was despite the negative impact on customer count due to tariff and premium increases on the back of declining disposable incomes, it added.
Overheads grew by 37 percent over the prior year and staff costs, electricity charges, rentals, bank charges and depreciation contributed most significantly to overheads growth.
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