Meikles Limited revenue for the nine months to December 31, 2021 jumped 131 percent and 33 percent, respectively, as volumes grew in retail and hospitality segments.
In a trading update for the quarter ended December 31, 2021, the group said the projected economic growth in 2022 brought optimism about prospects in the last quarter of its financial year.
Group revenue from continuing operations was ahead of the same period of the previous financial year by 123 percent and 39 percent in historical cost and inflation adjusted terms respectively, during the period under review.
“Group revenue for nine months ended December 31, 2021 grew by 131 percent and 33 percent in historical cost and inflation adjusted terms respectively,” said the company.
As a result, “the group is focussing on cost management to mitigate the adverse impact of rising inflation to profit margins,” the company said.
In addition, it said, all the group’s segments were implementing various measures to reduce the adverse impact of Covid-19 to operations.
Operationally, sales volume at the supermarkets segment increased by 32 percent and 29 percent for the quarter and nine months respectively relative to the same period of the previous financial year.
The group said stores were adequately stocked ahead of the festive season.
The group noted that despite the Omicron variant induced cancellations of regional and international bookings, there was a sustained growth in both room occupancy and revenue at the hospitality segment during the quarter under review.
Room occupancy for the quarter was 17,55 percentage points above the same period of the previous financial year.
“The occupancy for the nine month’s period closed at 17,41 percent, up 4,66 percentage points from room occupancy at 30 September 2021,” said the company.
During the same quarter, the average room rate and revenue per available room grew by 63 percent and 398 percent, respectively, in United States dollar terms, albeit coming from low bases.
Group profit after tax exceeded the same period of last year in both inflation adjusted and historical cost terms.
The group said it fared well in implementing planned capital projects during the quarter under review.
To this end, the supermarket segment completed the refurbishment of Makoni and Zengeza branches before the end of the quarter under review.
The group noted that its agricultural subsidiary, Tanganda Tea Company Limited was classified as a discontinued operation and an asset held for distribution to shareholders on March 31, 2021.
Tanganda was subsequently demerged from the group on February 1, 2022 and listed separately on the Zimbabwe Stock Exchange on February 3, 2022.
