HomeBusiness DigestDisposable incomes buoy OK earnings

Disposable incomes buoy OK earnings

OK Zimbabwe attributable earnings jumped 172% buoyed by improved disposable incomes, but the retail giant warned of looming supply gaps going forward.

By Chris Muronzi

The company reported a 23,4% revenue jump to US$582,9 million from US$472,4 million in the full year to March 30 (FY18) thanks to improved disposable incomes and the new dispensation in November last year.

The company’s operating profit went up 168,5% to US$23,2 million from US$8,6 million recorded in the same period last year, while Ebitda advanced 90,4% to US$31,6 million up from US$16,6 million in the same comparable period.

Attributable income went up 172,1% to US$16,6 million from US$6,1 million recorded in the same period last year. Headline earnings went up to 1,42c up from 0,52c.

OK Zimbabwe chief executive Alex Siyavora said gross profit margins came down 17,6% from 17,8%, owing to a product mix tilted towards lower profit margin products.

He said shrinkage stood at US$0,4 million in the year under review.
Siyavora said although competition was going to be tough, his group would stay on top of the game. He said a partnership with Kawena, a money transfer company, would continue, adding the arrangement helped ease procurement for the group.

He would not be drawn into revealing how much market share his company accounted for.

“Unfortunately, it’s not possible to say we are slightly ahead of the pack,” Siyavora said.

However, the company sees product supply challenges going forward.

“Management focus will be on securing adequate product to sustain operations. Working closely with our suppliers and contracting more SMEs onto the supplier database. The economic outlook is encouraging as the government is putting emphasis on economic resuscitation and growth and re-engagement with the international community,” Siyavora said.

OK Zimbabwe declared a dividend of 0,71c per share.

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