OK Zimbabwe records revenue growth

20 Feb, 2024 - 16:02 0 Views
OK Zimbabwe records revenue growth Mrs Margaret Munyuru

The Sunday News

Judith Phiri, Business Reporter

LISTED giant retail group, OK Zimbabwe revenue grew 57 percent to ZWL$1,6 trillion in inflation-adjusted terms for the nine months ended December 31, 2023, despite a decline in volumes.

In a trading update for the third quarter ended December 31, 2023, group company secretary, Mrs Margaret Munyuru said revenue growth was also recorded for the quarter.

“Group revenue for the quarter of ZWL$568 billion was 50 percent above last year in inflation-adjusted terms. In historical cost terms, group revenue grew by 535 percent to ZWL$490.5 billion.

“Group revenue for the nine months ended December 31, 2023 grew by 57 percent to ZWL$1.6 trillion in inflation-adjusted terms and by 501 percent to ZWL$1 trillion in historical cost terms. The business has adopted a structured cost containment programme to align overhead costs with business performance,” she said.

She, however, said volumes declined by 32 percent for the quarter versus the prior year and by 28 percent for the nine months ended December 31, 2023.

Mrs Munyuru said stringent supplier payment terms on Zimbabwean Dollar denominated purchases as well as and credit limitations on foreign currency-denominated purchases affected stock availability and pricing dynamics during the quarter.

“The group continues to implement volume growth strategies to stabilise business performance. The group continued to engage amicably with regulatory authorities to enhance macroeconomic stability and support the sustainable growth of formal retail business,” she added.

Looking ahead, she said the group remains optimistic about its future prospects and recognizes the need to adapt to the changing operating environment.

Mrs Munyuru said the business was focusing on delivering value to its customers by enhancing customer experience, executing fair pricing, improving market presence and optimizing operational efficiencies for long term sustainability.



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