Business / Local
Edgars on course to meet $65 million turnover
29 May 2013 at 11:48hrs | Views
EDGARS Stores Limited is on course to achieve turnover of above $65 million by year end, following a 4.8% increase in sales units as of April, company's MD Linda Masterson told the AGM this morning.
Masterson said as of April this year unit sales grew 4.8% above budget while retail sales jumped 13% up compared to last year although a percentage below target.
The increase in sales was helped by an 2.5% increase in the number of accounts to 186 029 from the December last year figure of 181 029 while the debtors book marginally improved by a percent to 77.5% in the period.
Masterson however said active accounts decreased to 73.7% compared to 78.9% recorded in the same period the previous year attributed to the fact the most customers are heavily indebted.
"Active accounts percentages are decreasing" said Masterson. "This is because Zimbabweans have become much more indebted and may have incurred losses through failed pyramid scheme investments," she added.
She however said operating profit was way above target although she could not give the actual figures saying it was still too early to divulge such information.
Gross margins however decreased to 45.2% against budget of 46.1% partly due to mark down action.
Masterson said the company has repaid all short term debt and is servicing the medium terms which resulted in finance cost declining by 41.4% from the period compared.
Masterson said the Edgars chain stocks were well balanced while Jet is however slightly overstocked by 12 weeks by end of June.
Going forward she added that the company will continue on an expansion drive with a new Jet store expected to be opened in Harare by end of June while five more premises have been secured of which one will be an Edgars stores.
Edgars is targeting by year end turnover of between $65 and $67 million, trading profit of 15% of turnover, profit after tax of between $4.4 to $4.7 million and gross margins of 46%.
Masterson said as of April this year unit sales grew 4.8% above budget while retail sales jumped 13% up compared to last year although a percentage below target.
The increase in sales was helped by an 2.5% increase in the number of accounts to 186 029 from the December last year figure of 181 029 while the debtors book marginally improved by a percent to 77.5% in the period.
Masterson however said active accounts decreased to 73.7% compared to 78.9% recorded in the same period the previous year attributed to the fact the most customers are heavily indebted.
"Active accounts percentages are decreasing" said Masterson. "This is because Zimbabweans have become much more indebted and may have incurred losses through failed pyramid scheme investments," she added.
Gross margins however decreased to 45.2% against budget of 46.1% partly due to mark down action.
Masterson said the company has repaid all short term debt and is servicing the medium terms which resulted in finance cost declining by 41.4% from the period compared.
Masterson said the Edgars chain stocks were well balanced while Jet is however slightly overstocked by 12 weeks by end of June.
Going forward she added that the company will continue on an expansion drive with a new Jet store expected to be opened in Harare by end of June while five more premises have been secured of which one will be an Edgars stores.
Edgars is targeting by year end turnover of between $65 and $67 million, trading profit of 15% of turnover, profit after tax of between $4.4 to $4.7 million and gross margins of 46%.
Source - financial express
