HomeNewsOK earnings per share shoot up

OK earnings per share shoot up

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OK Zimbabwe earnings per share jumped 1 167% in the first six months to September compared to last year buoyed growth in sales and improved revenue inflows.

Earnings per share as at September 30 stood at 0,38c compared to 0,03c in the comparative period.

During the period under review, revenue generated by the group increased by 61% to $185,6 million.
Profit for the six months amounted to $3,9m.

“Capital expenditure during the period was $7 million, which was spent on store refurbishments, a new store, replacement of plant and equipment, replacement of computer equipment, purchase of generators and overhauling the operations and distribution vehicle fleet,” said OK Zimbabwe chairperson David Lake.

Lake said the company’s outlets were adequately stocked through the period despite local manufacturing capacity remaining constrained.
The group opened a new Bon Marché outlet at Westgate Shopping Mall.

OK said sales were generated from two OK Mart stores improving steadily and the trend was expected to continue.

“The country therefore was largely depended on imported finished goods sourced in the main from South Africa. Pricing was not materially affected during this period by movement of the South African rand against the United States dollar,” said Lake.

He said for the company to maximise its brand strength and capitalise on pleasing growth in sales, it would open a new outlet in Harare while refurbishment work was planned for Bon Marché Avondale, OK Marimba and OK Fife Avenue.

Refurbishment of Bon Marché Mount Pleasant has been completed while there would be limited refurbishment at Bon Marché Borrowdale as well as at OK Mbare and OK Machipisa.

Employee costs increased by 62% in line with revenue growth and this was attributable to wage rate adjustments and increases of 25% in staffing levels commensurate with increased business activity.

“The combined effect of revenue growth, overheard cost containment and improvement in gross margin was to increase operating profit margin to 2,8% up from 0,6% achieved in the previous year,” said Lake.

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