By Beaven Dhliwayo.
Harare, Zimbabwe. (News Of The South) – Edgars sales for the year ended January 2017 dropped by 24 percent to$32.2 million from $42.7 million recorded in 2015 due to depressed consumer demand for clothing together with stock movement challenges faced in the transition period from the old system to the new Enterprise Resource Planning EPR) solution which impacted on performance.
Edgars Non Executive Chairman Themba Sibanda said sales of merchandise for the year at $50.3 million are 1 percent below last year $62.3 million although collections remains t show strength.
He said group margins came down by 3 percent from prior year due to aggressive mark downs in 2016, the impact f product mix and deliberate “right pricing”.
“Cash inflow from operating activities f $102 million is pleasing. As reported at half year, once off costs approximating at $2. 5 million emanating from retrenchment and EPR implementation were incurred and this impacted negatively n total comprehensive income which fell to $0.5 million from $4.6 million in 2015.
“During 2015 and 2016 we embarked on a highly focused cost cutting exercise. Our achievement of this is illustrated by the fact that 2016 costs are than 2015 expenses by $4 million, thus achieving our
commitment to go into 2017 with a lean business model,” he said.
Going forward Sibanda said the key strategic initiatives aimed at laying a solid foundation for the business to achieve profitable growth in future are largely complete, adding that focus in 2017 will be growing sales through a numerous activities including store improvements, marketing campaigns, staff training, improved supply chain management and merchandise assortments.
He said the company is again not able to declare dividends given the level of borrowings.
Comments
About Author
