The Confederation of Zimbabwe Retailers (CZR) says the FY2025 results of Edgars Stores Limited point to a firm operational recovery and a deliberate shift toward a more resilient, integrated retail model.
In a statement on Thursday, CZR said the performance reflects “a strong operational recovery” alongside a transition to a hybrid model combining merchandise sales, manufacturing and financial services.
Edgars reported revenue of US$41.3 million for the year to 2025, up 12% year-on-year. Operating profit rose 68% to US$5.3 million, while profit after tax surged 139% to US$1.95 million. Earnings per share also increased 139% to 0.34 US cents.
CZR said the outturn underscores not just top-line growth, but improved operational efficiency and a rebound from prior constraints.
A key feature of the results is the evolving revenue mix. Merchandise sales contributed US$34.1 million, while financial services — primarily the credit book — generated US$7.13 million.
“This illustrates a structural shift in which retail operations are increasingly complemented by financial services that now act as a significant profit driver,” CZR said.
The group’s hybrid retail-fintech model is gaining traction in a liquidity-constrained economy, where access to consumer credit remains a critical sales enabler.
The debtors’ book stood at US$12.6 million, with current accounts improving to 85.5%. Expected credit losses declined to 3.5%, pointing to strengthened credit risk management.
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CZR also flagged gains in manufacturing under Carousel (Pvt) Limited, where unit volumes increased 47%, signalling progress in vertical integration across production, retail and finance.
Strategic initiatives during the period included expansion of the USD-denominated credit book, selective store rollouts, investment in solar energy, and tighter inventory and working capital controls.
However, CZR cautioned that risks persist, including rising finance costs, reliance on short-term debt, the absence of dividend payments, and a qualified audit opinion linked to prior-period issues.
Edgars, which operates the Edgars and Jet chains, has faced sustained pressure in recent years from currency volatility, weak consumer demand, informal sector competition and limited access to affordable capital.
Industry analysts say the group’s latest performance suggests its strategy — anchored on credit-led sales, USD pricing and local manufacturing — is beginning to yield results.
CZR president Denford Mutashu said the turnaround offers a broader signal for the sector.
“As one of our flagship members, this performance provides insight into the future direction of Zimbabwe’s retail sector, with the shift from survival to financialised growth marking a pivotal transition for both the company and the industry,” he said.
