Zimbabwe’s leading retail chain, OK Zimbabwe’s recorded an 800 percent after tax profit for the year ended 31 December 2016 backed by sharpened focus on customer service and product mix, improved back office efficiencies, improved margins and better management of costs.
Revenue generated for the year ended 31 March improved by 8% to US$472.4 million from US$437.5 million recorded in the prior year with profit before tax standing at US$8.9 million representing 619.9% growth from US$1.2 million recorded in 2015.
According to OK Zimbabwe Chairperson, Mr. David Lake, capital expenditure for the year stood at US$10.9 million compared to US$4.4 million recorded in the prior year.
“Capital expenditure for the year was $10.9 million up from $4.4 million in the prior year as the group continued its refurbishment exercise to improve existing facilities to the world class standards.
“OK First Street, OK Kwekwe and OK Gwanda were refurbished while OK Chipinge and OK Houghton Park stores moved to bigger sites, the group continued to expand its foot print country wide.
“Three new stores were opened during the financial year and these are OK Mart Gweru, OK Mart Victoria Falls and OK Norton.
“OK Herbert Chitepo and Bon Marche Parklands, both in Bulawayo were closed on 12 November 2016 and 31 March 2017 respectively as the group continues to rationalize its operations to improve efficiencies,” said Lake.
The Group Chief executive Officer, Alex Siyavora said despite the increase in sales, overheads remained flat compared to the prior year.
“However a few overhead cost lines had significant increases but their impact was mitigated by saving in other cost elements,” said Siyavora.