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OK Zimbabwe revenues up

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OK Zimbabwe Limited posted a 59,8% increase in revenue for the first quarter of the financial year ending March 2012.

First quarter revenues totalled $89 million against a projection of $82,5 million.

Company chief executive officer Willard Zireva yesterday said OK Mart contributed 8,3% to the revenue.

It recorded a growth in sales of 46,5%.
Zireva said the company had budgeted that OK Mart would break even after operating for three months, but it started to break even after only two months in operation.

“The OK Mart operation is currently breaking even, but the outlook is improved profitability from July,” said Zireva.

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.

OK Mart wholesales in Bulawayo and Harare started operating in April this year.

During the first quarter of the financial year, gross profit margin stood at 17,9% from 17,8% in the last financial year.

“Efforts continue to improve the profit margins through better sourcing and improved participation of higher margin products. We anticipate good growth to half year,” he said.

Zireva said shrinkage controls have improved with stock losses lower than the target of 1%. He added this has contributed to profitability by 500% from last year.

Zireva said the company will be opening a new branch in Westgate by end of August while refurbishment of OK Marimba, Bon Marché Avondale and Mt Pleasant would be undertaken before the end of the financial year.

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.

The company posted net operating expenses of $19,9 million from $13,7 million last year attributed to an intensive marketing drive.

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