OK Zimbabwe Limited says it expects its giant wholesales OK Mart to contribute to the company’s revenue in the next few months as it has so far managed to break even.
The company acquired Makro Zimbabwe for $400 000 last year and sees the acquisition as an opportunity to grow its operations in a different market segment.
The wholesales in Bulawayo and Harare started operating in April this year
Speaking at a briefing for analysts in Harare on day, OK Zimbabwe chief executive officer Willard Zireva said: “OK Mart is exceeding our budget expectations and it’s at a break-even point. We are also working on the sales mix.”
The retail giant posted a revenue of $257,4 million up from $187,5 million for the year ended March 31 2011 indicating a 37% increase on last year’s figures.
Zireva said while profits were higher than last year margins were thinner.
The company posted net operating expenses of $19,9 million from $13,7 million last year largely as a result of an intensive marketing drive.
As a result of increased cases of shoplifting, including by staff, Zireva said OK Zimbabwe was forced to install CCTV in some of its branches.
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Zireva said shrinkage was 1% of sales this year to $2,2 million from $3,8 million same period last year.
“In addition, ageing refrigeration plants, generators and CCTV equipment necessitated significant repairs and maintenance. The company also engaged external security to replace internal personnel as one of many ways to combat shrinkage,” Zireva said.
Ok Zimbabwe Limited spent $100 000 as opposed to $1,3 million on cost finance compared to the same period last year.
Profit before taxation went up to $5,3 million from $1,2 million in 2010 while profit for the year went up by 250% to $4,3 million from $1,2 million last year.
