Business / Companies
OK Zimbabwe increase revenue by 5.1%
19 Jul 2013 at 15:04hrs | Views
OK Zimbabwe achieved revenue of $123.1 million which was a growth of 5.1% over same quarter of F13.
Management says this was slightly below its rather aggressive budget which took into account anticipated national GDP growth of 5%.
OK Mart growth was slightly below the company average mainly affected by lower sales in liquor. Gross margin maintained at almost the same level as in the last financial year.
Profit growth for the quarter is in line with sales growth but this should improve as we go forward with all the initiatives which are in place or being worked on.
OK Zimbabwe recently announced the arrangement with South African company, Kawena (Pty) Limited and it says this has very exciting opportunities. The objective is to tap into the diaspora Zimbabwean (including the unbanked) who have to support their relatives at home and this brings these remittances into the formal sector and helps in reducing the country's Balance of Payments deficit as no forex goes out of Zimbabwe with product paid for in SA and received in Zimbabwe.
OK has also gone into a distributorship arrangement with blanket manufacturer, Aranda from South Africa. The move into financial services is in full steam and more offerings will be made and these will enhance revenues.
The store refurbishment and other capital expenditure programmes continue with funding from cash generated from operations. The company has opened two new outlets in the first quarter, that is, Wynne Street and Chitungwiza town centre but will be moving out of the small Rezende Street outlet end of July. Building work is in progress in Hwange with a target opening by end of September while work is in progress to move to bigger space in Eastlea. Refurbishments are planned for OK Waterfalls, OK Bindura and Houghton Park and partial refurbishment for OK Gweru and Mutare.
Management says this was slightly below its rather aggressive budget which took into account anticipated national GDP growth of 5%.
OK Mart growth was slightly below the company average mainly affected by lower sales in liquor. Gross margin maintained at almost the same level as in the last financial year.
OK Zimbabwe recently announced the arrangement with South African company, Kawena (Pty) Limited and it says this has very exciting opportunities. The objective is to tap into the diaspora Zimbabwean (including the unbanked) who have to support their relatives at home and this brings these remittances into the formal sector and helps in reducing the country's Balance of Payments deficit as no forex goes out of Zimbabwe with product paid for in SA and received in Zimbabwe.
OK has also gone into a distributorship arrangement with blanket manufacturer, Aranda from South Africa. The move into financial services is in full steam and more offerings will be made and these will enhance revenues.
The store refurbishment and other capital expenditure programmes continue with funding from cash generated from operations. The company has opened two new outlets in the first quarter, that is, Wynne Street and Chitungwiza town centre but will be moving out of the small Rezende Street outlet end of July. Building work is in progress in Hwange with a target opening by end of September while work is in progress to move to bigger space in Eastlea. Refurbishments are planned for OK Waterfalls, OK Bindura and Houghton Park and partial refurbishment for OK Gweru and Mutare.
Source - OK Zimbabwe trading update
