TOP retail chain, TM Pick ‘n Pay Supermarkets has recorded a 10% decline attributable to depressed consumer spending in the economy.
Presenting a report on the unit’s performance for the period ended August 31 2023, Meikles Limited chairman, John Moxon said despite revenue for the period recording growth, units sold declined during the period.
“Revenue for the period grew by 100% to ZWL 854.5 billion on a like-for-like basis. In historical cost terms, revenue grew by 647% to ZWL 613.3 billion. Units sold declined by 10% due to depressed consumer demand in June and July.
“On a positive note, we have witnessed a recovery in units sold after 31 August 2023,” he said.
Moxon revealed that units sold in September 2023 were 15% above the same month of last year.
Revenue received in foreign currency during the period under review was slightly below 20% of total revenue with the main impediment to the growth of foreign currency revenue being the controlled in-store exchange rate on formal retail.
“The recent recommendation by Monetary Authorities to lift the cap on the in-store exchange rate will augur well for the formal retail sector if implemented.
“Our online store, “Click and Collect” performed well during the period under review and work is in progress to add ZWL as a payment option on the platform,” said Moxon.
In historical cost terms, gross profit margins for the two supermarkets were 34,8% up from 32,40%.
Wastage and shrinkage results for the period under review were within our targets.
Profit Before Tax (PBT) for the period amounted to ZWL 31.2 billion, compared to ZWL 24.36 billion achieved in the previous period.
In historical cost terms, PBT grew by 276% to ZWL 38.4 billion up from ZWL 10.2 billion in the previous period. PBT was adversely impacted by ZWL 10,4 billion exchange losses on seven leases, most of which will be reversed in the second half of the financial year.
“The segment opened two new stores, Gwanda, and Robert Mugabe Harare during the period under review.
“The two new stores performed satisfactorily up to the end of the interim period. The segment leveraged its strong liquidity position and maintained reasonably stocked stores during a tumultuous period with constant changes in suppliers’ trading terms,” added Moxon. – NewZim