ZSE-listed giant retailer OK Zimbabwe announced a huge 196% rise in after-tax profit to ZWL$49.2 million for the year ended March 31, 2019 on the back of improved sales.
Group revenue was up 37.6% to ZWL$802 million, although the retailer lamented the difficult operating environment, which it described as “challenging due to foreign currency constraints.”
Earnings before interest, taxation, depreciation and amortisation was up 142% at ZWL$76.8 million, which also meant that earnings per share also jumped 190% to 4.12 cents.
Overall profitability was also aided by the group’s ability to maintain overheads at 31.4%, below revenue growth at 37.6%.
Management said staff costs, maintenance, rentals and bank charges were attributable for the increase in operating expenses.
He said the group operated debt free and used internally generated funds for capital expenditure amounting to ZWL$25.8 million, up from
ZWL$15.5 million in 2018
Said chairman Herbert Nkala in a statement accompanying the results:
“Despite the increasingly harsh operating environment, the group recorded an improved performance in both sales growth and profitability compared to prior year.
“The growth in sales and increase in profitability are attributable to many successful and robust promotions, refurbished branches, continued customer focus, and the lag of cost increase behind revenue growth in inflationary conditions.”
The board declared a final dividend of 1.71 cents.