The Sunday News
Judith Phiri , Business Reporter
LISTED clothing retailer and manufacturer, Edgars Stores Limited has said its manufacturing business achieved a growth in sales units of 54,6 percent for the nine months to 8 October 2023.
The company revealed that this was achieved through giving focus to local production to achieve exclusivity and high quality.
Cumulatively, unit sales were up 17,6 percent to 122 789 compared to 104 405 in 2022.
In a trading update for the nine months to 8 October 2023, Edgars group chief executive officer (CEO) Mr Sevious Mushosho said there are plans to acquire more machines, to help further boost production.
“On Carousel Manufacturing, the business achieved a growth in sales units of 54,6 percent to 54 835 on the prior year during the quarter under review,” he said.
“This was achieved through giving focus to local production to achieve exclusivity and high quality. There are plans to acquire more machines including a laser cutter to improve efficiencies, increase production capacity and reduce cost of production.”
He said at the end of 30 September, the factory had enough stocks of raw materials to meet the increased demand from the chains, while orders for more fabric were placed to cover 12 months of production for all the product ranges.
Mr Mushosho said there were plans to produce for the South African market in the coming year.
He said the Edgars Chain achieved unit sales of 260 043 representing a growth of 39,7 percent on prior year.
“However, cumulatively for the nine months to 8 October, the Chain unit sales were 2,16 percent down on prior year as for 2023 they were 703 253 against 718 768 in 2022. Revenue for the nine months was up 43,99 percent relative to same period last year in historical terms. Credit sales constituted 63 percent of total sales compared to 54 percent in same period last year. The chain closed September with stock cover of 10,0 weeks, while in 2022 it was 17,3 weeks.”
On the Jet Chain, Mr Mushosho said it achieved quarter three unit sales of 334 910 which were 18 percent up on prior year units of 283 877.
However, he said the cumulatively for the nine months to 8 October, the Chain unit sales were 4,10 percent down on prior year as in 2023 they were 918 616 against 957 900 in 2022.
“Revenue for the nine months was up 47,98 percent on prior year same period in historical terms. Credit sales made up 60 percent of the total sales for the quarter compared to 49 percent in same period last year. Stock cover closed at 10.6 weeks, while in 2022 it was 12.46 weeks,” he said.
Mr Mushosho said the group did exceptionally well during the third quarter achieving unit sales of 649 788 which was 28,5 percent up from the same period last year which had 505 531.
However, he said cumulatively for the nine months to 8 October, the unit sales were 2,4 percent below last year as 2023 recorded 1 744 654 against 1 781 073 in 2022 due to the currency instability experienced in quarter two which saw customers losing a significant part of their buying power, especially the civil servants who are 35 percent of their business.
In financial services, he said in historical cost terms, finance income decreased by 32,80 percent (ZWL$12,42 billion) in the nine months relative to prior year same period (ZWL$18,48 billion).
Going forward, Mr Mushosho said: “The Group expects the operating environment to remain stable for the remaining part of the year, creating opportunities for the business to grow further. We will continue to look at our business model and review it, to adapt to changes taking place in the economy.”
He said they were very confident that their turnaround initiatives are paying dividends as their operating results continue to improve each month with gross profit per unit going up while cost per unit is declining.
While, the business was alive to opportunities presented to expand both their brick and mortar, and online footprint and develop a resilient business model that will withstand the impact of future shocks and disruption.
