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Edgars Stores after-tax profit up 17 percent

Edgars Stores Limited’s after-tax profit for the 26 weeks ended July 6 was up 17% to $1,1 million, buoyed by growth in revenue

Edgars Stores Limited’s after-tax profit for the 26 weeks ended July 6 was up 17% to $1,1 million, buoyed by growth in revenue.

Report by Tarisai Mandizha

Basic earnings per share rose to US0,44 cents from US0,38 cents.

Revenue for the period under review rose to $28,7 million from $25,2 million in the prior comparative period. Operating expenses on the other hand increased to $4,9 million from $3, 8 million in 2012. Unit sales within the Edgars chain, according to the company, grew by 4,4%, while store trading profitability increased by 23,9%.

In a statement accompanying the group’s financial results, Edgars chairperson Themba Sibanda said the bulk of capital expenditure was incurred on new stores and refurbishments of existing ones.

The company’s Westgate and Marondera branches were revamped and the group opened an additional branch in Chipinge at the end of July.

Sibanda said the company would embark on a massive marketing drive to grow the Jet brand in a bid to grow the revenue base.

“We will intensify efforts to improve product offerings and value within both retail chains, while implementing fighter cost control across the board,” Sibanda said. “Through these initiatives, the group will realise the desired growth in profit by year end.”

Growth in the Jet chain’s turnover amounted to 18,7%, contributing 18,2% of the company’s total revenue. In the period under review, credit management was at $18,8 million, trade receivables were 14,7% up as compared to last year’s, with the number of accounts being 188 447 of which 72,5% were active.

Sibanda said average handovers for the period amounted to 1,2% and 0,3% lagged credits sales and lagged debtors respectively, while the provision for doubtful debts stood at 2% of the total debtors. The group opened two new stores in Gokwe and Harare, bringing the total number of Jet stores to 18 as compared to 14 in 2012.