OK Zimbabwe welcomes exchange rate stability with 27% revenue growth

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LEADING retail chain, OK Zimbabwe has hailed the current exchange rate stability and improved foreign currency availability for boosting its operations leading to a 27% growth in revenue.

The growth in revenue was recorded April to December 31 2020.

Presenting a trading update for the period under review, OK Zimbabwe secretary Margaret Munyuru hailed the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction system.

“The foreign currency auction system improved availability of foreign currency leading to relative stability of the exchange rate as well as improved supply and prices of goods. Under these conditions, the group was able to stock up its stores adequately,” she said.

During the period, revenue grew by 27% for the quarter and 3% for the year to date in inflation adjusted terms and by 536% and 601% for the quarter and year to date respectively.

Sales volumes grew by 7% for the quarter but were below the prior year by 15% for the nine months under review.

“While the year to date volume is negative, this is an improvement from the retreat by 26.9% reported for the half year ended 30 September 2020,” Munyuru said.

“The group continues to operate profitably and margins for the third quarter were consistent with the performance reported for the half year ended 30 September 2020.

“The directors and management have assessed the group’s cash generating capacity and are satisfied that the group is capable of settling all its obligations as they fall due as well as continue operating profitably.”

Munyuru said the cost of implementing Covid-19 pandemic precautions and awareness campaigns for staff, customers and the public has added OK Zimbabwe’s operating costs, but the retailer considers this to be worthwhile.

“The good rainfall received this agricultural season points to a good harvest and this is expected to result in improved consumer spending power and consumption.”