LISTED retail outlet OK Zimbabwe’s revenue grew by 5,1% in the first quarter of the year to $123,1 million although this was below the company’s target.
Gamma Mudarikiri Own Correspondent
Revenue in the period grew to $123,1 up from $117 million recorded in the same period the previous year resulting in the 5,1% positive variance. In a trading update, management said the growth in turnover was lower than the projected target in sync with a slowdown in the gross domestic product (GDP) growth of 5%.
“This was slightly below our rather aggressive budget which took into account anticipated national GDP growth of 5%,” OK, in a statement, said. “It is generally accepted that the country may actually have experienced zero growth or deflation during the period,” the company added.
Economic growth in the period under review slowed down to 4,3% as sectors like agriculture and manufacturing continued to struggle with low capitalisation.
The company said profit growth for the quarter was in line with sales growth, but will be expected to improve as management is working on various initiatives to achieve the set results.
The group added that it will focus on effective control over shrinkage as well as tightening the management of overheads which in the last financial year chewed up $2,3 million.
Management said store refurbishment and other capital expenditures programmes are ongoing with funding from internal resources. Two new outlets were opened in the first quarter of the year in Harare while building work is also in progress in Hwange which is expected to be opened by end of September this year.
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OK recently announced that it had partnered with a South African company Kawena, over an electronic trading deal to allow Zimbabwe resident in South Africa to purchase goods for their relatives back home electronically.
Such a structure is expected to remove the hustles of transporting groceries from South Africa. In addition the company said it had entered into a distributorship arrangement with blanket manufacturer Aranda, again from South Africa.
“The move into financial services is in full steam and more offerings will be made and these will enhance revenues,” the company added.
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