OK Zimbabwe Limited Group opened a new OKmart store in Victoria Falls on 1 October 2020 and an OK Store in Harare’s Sanganayi Inn area on 5 November 2020 and the new stores were well received in the respective markets and are expected to contribute meaningfully to the Group’s revenue Business Mail can report.
In a financial statement for the six months ended 30 September the Group’s Chairman Hebert Nkala said major refurbishment programme will continue and eight stores have been targeted for completion by the end of the financial year.
“The Group’s capital expenditure programme continued during the period and store refurbishments were completed at OK Avonlea and OK Machipisa. Customers responded positively to the improved facilities in-store, leading to improved sales.
“The Group embarked on a refreshing exercise for all its three store brands, namely OK, Bon Marche’ and OKmart, to reflect how it is staying abreast with customers’ requirements and aspirations”, said Nkala.
Meanwhile, the Group recorded positive financial results as the results were inflation-adjusted to reflect the impact of the general change in the purchasing power of the reporting currency in accordance with IAS 29, Financial Reporting in Hyperinflationary Economies.
“Revenue for the half-year grew by 684% to ZWL 8.7 billion from ZWL 1.1 billion in the comparative period. Profit before tax of ZWL 1.3 billion was 621% up on prior year’s ZWL 185 million, while profit after tax increased by 634% to ZWL 968.3 million from ZWL 131.9 million in the prior year.
“Overheads grew by 680.6% over the prior year. The Group’s response to fight Covid-19 pandemic impacted overheads, particularly RDT and PCR tests, purchase of face masks, thermometers, hand sanitizers and staff passage costs.
“Contingent rentals, repairs and maintenance, bank charges and cleaning expenses also significantly contributed to increasing in overheads.
“Capital expenditure for the half-year was ZWL 384.9 million, up from ZWL51.5 million for the same period in the prior year. Most of the capital expenditure was on store refurbishments and equipping new stores”, explained Nkala.
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