Business / Companies
OK Zimbabwe releases outstanding 2011 interim results
23 Nov 2011 at 02:15hrs | Views
OK Zimbabwe's revenue generated for the half year grew by 61% compared to that achieved during the same period in 2010. Total overheads also increased, but by a comparatively lower percentage of 51%. Employee costs increased by 62% in line with revenue growth and this was attributable largely to wage rate adjustments and increases of 25% in staffing levels commensurate with increased business activity.
Net operating expenses were contained to an increase of 44%. Shrinkage and mark downs were well-controlled and this contributed to an improved gross margin. Gross margin increased to 17.1 % up from 16.0% achieved in the prior year. The combined effect of revenue growth, overhead cost containment and improvement in gross margin was to increase operating profit margin to 2.8% up from 0.6% achieved in the prior year. Capital expenditure during the period was $7.0 million which was spent on store refurbishments, a new store, replacement of plant and equipment, replacement of computer equipment, purchase of generators and overhauling the operations and distribution vehicle fleet.
The directors have declared an interim dividend of 0.15 United States cents payable on or about the 10th January 2012.
All the company's stores were adequately stocked throughout this period. This, combined with effective sales and marketing programmes, generated significant growth in sales. A new Bon Marche outlet was opened on the 27th August 201 I in the Westgate Shopping Mall and sales generated in the two OK Mart stores are improving steadily in a trend expected to continue.
Utilising capital raised in 2010 and earnings generated by the business, the company has continued its store refurbishment programme with full- scope refurbishments completed at OKQueensdale and OKAvonleaand limited refurbishments completed at Bon Marche Chisipite. In all cases, refurbishments were complimented by noticeable increases in business activity.
OK Zimbabwe says, in order to maximise its brand strength and to capitalise on pleasing growth in sales, the company will open a new outlet in Harare on Kwame Nkrumah Avenue between Julius Nyerere Way and Leopold Takawira Street. Additionally, full-scope refurbishment work is planned for Bon Marche Avondale, OK Marimba and OK Fife Avenue. Refurbishment of Bon Marche Mount Pleasant has been completed since the half year and limited refurbishment work will be conducted at Bon Marche Borrowdale as well as at OK Mbare and OK Machipisa.
Net operating expenses were contained to an increase of 44%. Shrinkage and mark downs were well-controlled and this contributed to an improved gross margin. Gross margin increased to 17.1 % up from 16.0% achieved in the prior year. The combined effect of revenue growth, overhead cost containment and improvement in gross margin was to increase operating profit margin to 2.8% up from 0.6% achieved in the prior year. Capital expenditure during the period was $7.0 million which was spent on store refurbishments, a new store, replacement of plant and equipment, replacement of computer equipment, purchase of generators and overhauling the operations and distribution vehicle fleet.
The directors have declared an interim dividend of 0.15 United States cents payable on or about the 10th January 2012.
Utilising capital raised in 2010 and earnings generated by the business, the company has continued its store refurbishment programme with full- scope refurbishments completed at OKQueensdale and OKAvonleaand limited refurbishments completed at Bon Marche Chisipite. In all cases, refurbishments were complimented by noticeable increases in business activity.
OK Zimbabwe says, in order to maximise its brand strength and to capitalise on pleasing growth in sales, the company will open a new outlet in Harare on Kwame Nkrumah Avenue between Julius Nyerere Way and Leopold Takawira Street. Additionally, full-scope refurbishment work is planned for Bon Marche Avondale, OK Marimba and OK Fife Avenue. Refurbishment of Bon Marche Mount Pleasant has been completed since the half year and limited refurbishment work will be conducted at Bon Marche Borrowdale as well as at OK Mbare and OK Machipisa.
Source - Byo24News
