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Michael Tome
Business Reporter
TM Pick n Pay sales for the year to March 2021 dropped by 21 percent due to Covid-19 limitations in trading times during the second half of the year, the company said.
The company also temporarily closed some of the branches after some workers tested positive.
The company, however, highlighted that volumes uptake are beginning to increase.
“Sales volumes declined by 21 percent primarily due to Covid-19 induced restrictions in trading times. In addition, some stores had to close for certain periods of time when staff tested positive. The decline in volumes reduced in the second half of the financial year and volumes are currently increasing on a month-on-month basis,” highlighted Mr John Moxon, the Meikles group chairman in financial statement.
Revenue for the period under review increased to $28,4 billion from $27,6 billion translating to a 3 percent jump in the positive compared to the same period last year.
Profit after tax stood at $632,5 million from $2 billion.
Operating profit grew to $1,1 billion an increase from $734, 1 million recorded in the same period in 2020, predominantly attributed to stringent margin control and substantial savings in operating costs.
“Profit growth was achieved through tight margin control and substantial savings in operating costs, other than employee costs. The Covid-19 pandemic resulted in unforeseen costs, examples being cost of sanitisers, masks and tests.
“All other expense items increased to a lesser extent than the growth in revenue,” said the group.
Going forward, the retail group indicated that it has invested $580 million in expanding its branch network and refurbishment of some branches including Pick n Pay Aspindale and Pick n Pay Chiremba.
“In the next three years, a substantial growth in investment in the refurbishment and construction segment will be implemented.”
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