HARARE: Meikles Limited has recorded a 20% growth in trading income for the five months to August 31 2015 driven by growth in sales.
Speaking at the group’s annual general meeting yesterday, Meikles chairperson John Moxon said group sales went up by 15%. Interest expenses went down while trading expenses went up 9% mainly contributed by TM/ Pick n Pay supermarkets. In the period under review, TM sales went up by 17% attributed to affordable prices and promotions being run by the supermarket chain.
“TM sales went up 17% and this means our market share is growing as no other supermarket has recorded this significant growth in the past few months. “The growth in TM sales means the group market share is growing and the customers are very pleased with TM,” Moxon said.
Overall retail sales went up by 50%. Moxon said the group was also working on opening eight new shops under the Meikles retail division between October and January next year made up of Meikles Mega Market, Meikles Stores and Barbours. He said the existing stores in Mutare would be restructured to Meikles Mega Market stores.
Moxon said Meikles Hotel’s occupancy levels grew by 4% and turnover went up by 5% while in Victoria Falls occupancy went up by 2%. He, however, said sales went down by 16% due to value-added-tax (VAT) on accommodation and foreign arrivals.
Government introduced 15% VAT on non-resident tourist accommodation. The industry has been pushing government to remove the VAT which has made the destination uncompetitive. Moxon said that Meikles’ agricultural concern, Tanganda, was well on course with 800 hectares of tea, 500 hectares of avocado and 400 hectares of coffee.
“Tanganda has installed state-of-the-art packaging machinery in Mutare which will improve quality and reduce costs. As packed tea offers higher margins, this will help achieve Tanganda’s objective,” Moxon said. He said Tanganda was getting into the competitive South African market and the group expected to make a profit soon.
