HARARE: OK Zimbabwe Limited revenue declined by 7,9% to $213,6 million for the six months ended September 30, 2015 due to lower consumer spending.
In 2014 revenue was $231,1 million. Speaking at the company’s analyst briefing in Harare last week, OK Zimbabwe Limited chief executive officer, Willard Zireva, said challenges presented by the declining economic environment have continued unabated and worsened coupled with the effect of a depressed world economy.
Zireva said in the retail sector the direct effect was that, no matter how well- stocked stores nor how competitive services and pricing, people simply have less to spend on a day to day basis.
“Under these conditions, the group posted a decline both in revenue and profitability. Operating costs declined… A new OK store was opened in Zvishavane and a new OK Mart was opened in Mutare,” he said. Profit after tax tumbled to $1,2m from $4,3m in 2014.
Overheads decreased by 5,5% to $34,2m from the comparable period attributed to cost cutting initiatives. He, however, said controls over shrinkage were effective and will continue to be enhanced.
“The difficult of the economic environment with which we continue to grapple are expected to persist. Never the less, the group will increase its efforts to improve sales generation and profitability. The expansion of OK Mart chain will continue as will be the refurbishment programme,” he said.
“Considerable effort is being made to improve our operating efficiencies, as well as to ensure that our well-motivated staff delivers an even better service for our customers. Early indications are that these initiatives give cause for optimism.”
