OK Zim revenue up 57%
GROUP revenue at the listed retail giant OK Zimbabwe grew 57% to ZWL$1,6 trillion in inflation adjusted terms for the nine months ended December 31, 2023, despite volumes suffering a severe knock.
For the third quarter ended December 31, 2023, revenue stood at ZWL$568 billion, 50% above last year in inflation adjusted terms.
“The business has adopted a structured cost containment programme to align overhead costs with business performance,” group company secretary Margaret Munyuru said in a trading update for the third quarter ended December 2023.
The company said the depreciation of the local currency against foreign currencies continued in the quarter under review.
“Consequently, persistent price changes adversely impacted consumer demand and supply dynamics. Compliance with laws and regulations governing currency resulted in high in-store prices and loss of competitiveness especially against unregulated markets,” she said.
“The group continued to engage amicably with regulatory authorities to enhance macroeconomic stability and support the sustainable growth of formal retail business.”
The Zimdollar has depreciated by 40% against the greenback since the beginning of the year. Officially, the local currency is trading at ZWL$12 955 against the United States dollar. On the parallel market, it is hovering around ZWL$17 000.
Volumes declined by 32% for the quarter versus prior year and by 28% for the nine-month period.
Munyuru said stringent supplier payment terms on Zimdollardenominated purchases as well as credit limitations on foreign currency-denominated purchases affected stock availability and pricing dynamics during the quarter.
“The group continues to implement volume growth strategies to stabilise business performance,” she said.
Looking ahead, the secretary said the group remained optimistic about its future prospects and recognised the need to adapt to the changing operating environment.
“The business is focusing on delivering value to its customers by enhancing customer experience, executing fair pricing, improving market presence and optimising operational efficiencies for longterm sustainability,” she said.
In historical cost terms, group revenue for the quarter under review grew 535% to ZWL$490,5 billion. For the nine months, it rose 501% to ZWL$1 trillion.