By Almot Maqolo.
HARARE, Zimbabwe (News of The South) – Retail group, OK Zimbabwe’s after-tax profit for the year ended March 31, 2018 nearly trebled to $16,6 million from $6 million in the previous period buoyed by product availability, promotions, continued focus on customer service and tighter internal controls.
Total group’s revenue went up 23 percent to $582,9 million compared to $472,4 million recorded in the previous period.
Cash from operations increased 33 percent to $30,8 million from $23,1 million previously.
Net operating costs up 15 percent to $37,6 million from $32,7 million recorded in the prior period. Finance costs declined from $87,226 in the previous period to $856.
Overheads growth was restricted to 17 percent which is below the revenue growth of 23 percent.
“Increases were attributable to among others, staff costs, utility charges, bank charges and rentals. The costs lines that increased significantly were those corresponding directly with sales generated,” said the group’s chairman David Lake in statement on Wednesday.
The company operated free of debt as internally generated funds were adequate for working capital and capital expenditure requirements.
“Capital expenditure for the year was $15,5 million up from $10, million in prior year as the group continued with its refurbishment exercise to improve existing facilities as well as expand its trading footprint,” Lake said.
During the period, the retail group opened two new stores in Harare, one in Waterfalls and the other in the central business district.
The company declared a dividend of $0,51 cents per share. The final dividend brings the total dividend declared for the year to $0,71 cents per share.
Total assets for the group went up 27 percent to$174,8 million from 137,9 million reported in the previous period.
In the outlook, lake said the company will continue to improve profitability through growing sales and managing its costs.
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