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Edgars on course to meet $65 million turnover

by Business reporter
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%.

Source - financial express