OK ZIMBABWE posted a profit after tax decline of $9,7 million from $12,4 million for the year ended March 31 2014 due to increases in employee benefits during the period under review.
VICTORIA MTOMBA BUSINESS REPORTER
Group chairman Dave Lake said in a statement accompanying the financial results that the supply of product was consistent, but prices in the company’s shops decreased in the second half of the financial year as both foreign and local suppliers reduced their prices in an effort to stimulate the sluggish demand.
“The gross margin eased marginally while operating costs increased at a rate higher than sales growth due to expansion initiatives which included the setting up of a financial services function together with necessary additional employees to man those extra facilities,” Lake said.
He said revenue for the group during the period under review increased to $484 million compared to $480 million same period in 2012. Capital expenditure stood at $12,4 million up from $12,1 million in 2012.
Overheads increased by 6,3% to $69,4 million due to increases in employee benefits as more employees were engaged to man both new branches opened during the year and the refurbished branches.
Borrowings for the group decreased to $200 000 from $800 000 in 2012 as the expensive Investec Africa Frontier Private Equity Fund loan was converted to equity in April 2013.
The group will be embarking on a refurbishment exercise of OK Gweru, OK Mutare, OK Mbuya Nehanda and Bon Marche Chisipite in Harare. It said limited refurbishment would be done in Rusape.
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OK Zimbabwe is among the top performers at the Zimbabwe Stock Exchange and is among the top 10 companies on the local bourse.
