Zimbabwe News and Internet Radio

OK basks in 800% profit

Retail giant OK Zimbabwe Limited has posted an 800 percent profit of $6,1 million for the full year period ended 31 March 2017 compared to $672 000 recorded in the same period last year.

OK Zimbabwe
OK Zimbabwe

Despite signs of distress in the macro-economic environment, the group says it has put its focus on increasing growth in sales to consolidate earnings, managing overhead costs and improving profitability on the back of a decline in sales and low gross margins that chewed profits in the prior year.

In a statement accompanying the group’s audited results for the period issued yesterday, OK revealed plans to open more outlets and refurbish existing branches so as to buttress its drive to generate more profits.

“Despite the difficult operating environment, the group delivered a significantly improved performance. This was a result of sharpened focus on customer service and product mix, improved back office efficiency, improved margins and better management of costs as a result of initiatives rolled out in the prior year,” the group said.

“Revenue generated for the year improved by 8.0 percent to $472.4 million from $437.5 million in the prior year. Profit before tax of $8.9 million was 619.9 percent up on the prior year’s $1.2 million, while profit after tax increased by 800 percent to 6.1 million from $0.7 million in 2016.”

The group said overheads remained unchanged as it continued to enforce measures to contain costs, having further reduced cost of borrowing from $0.3 million to $0.1 million.

OK channelled $10 million towards capital expenditure during the period up from $4.4 million in the prior year.

The funding was used to refurbish and improve existing stores such as OK First Street, Ok Kwekwe and OK Gwanda while OK Chipinge and OK Houghton Park stores were moved to bigger sites.

During the period the group extended its footprint by opening three new stores – OK Mart in Gweru, OK Mart Victoria Falls and OK Norton.

However, OK Herbert Chitepo and OK Born Marche Parklands in Bulawayo were both closed in November 2016 and March 2017 respectively as part of the group’s rationalisation exercise meant to improve efficiencies.

Meanwhile, directors have recommended a final dividend of 0.26 cents per share to be paid to shareholders on or about 3rd of July 2017. The Chronicle

  • The police can make that kind of money in one month through the retained fines money.

  • Is this not partly attributed to expectantly high pricing leading to wild profit margins?

  • zvabhadhara pa zim magutisa makuti nyika haina zaka

  • 800 per cent???

  • Is that realistic with such meltdown or kubira vanhu due to no price controls

  • Let’s see what salary % age increase it will award it’s workers

  • That’s a naked lie

  • day light robbery iripachena

  • Good for the shareholders monies

  • Day light robbing of the poor through overpricing. Govt must control prices of basic commodities

  • A lot of cooking figures here

  • Can they also use some of that profit to refurbish OK mabelreign cos it looks more like kuma grocer ekumusha.

  • Swiping…….

  • Retail giants increasing prices willy nilly nd with csh shortages.. Thy kno desperate customers wl come nd swipe nd get cash backs

  • Is the retail sector that profitable in Zimbabwe. Maybe that’s why Pick n Pay has decided to invest so much into Zim. There is also a lot of talk about Woolworths and Shoprite/Checkers looking at entering Zim.

  • Giant on 6.1 million profit ma One

  • Vanga tadza sei vachimbadzurisa paswipe neecocash gvt should investigate OK

  • hoooo

  • Nkosi

    There is nothing like 800% profit, rather profit increase.

  • Allaz

    Yaah somebody is really cooking the books at OK – customer numbers are SO LOW at OK these days – Choppies and TM/Pick n Pay have been really killing them these last two years but they wanna lie to us like this??? They doing their accounts just like a parastatal when its under spotlight it seems.

  • Positive effects of SI 64

  • Its expected as these retail shops are acting as the banks these days…..while banks are empty…

  • I can smell a big rat with this result in such an economy . More questions than answers?

  • Through overpricing

  • its gd bt how could that be either they are overcharging or we need to revisit the price regime.

  • i thnk thy should also cushion there staf welfare, cost containment strategies yes bt t shld reciproc… https://t.co/h7RFvM8Ebv

  • This ripping of people

  • Most retailers in Zim are benefitting from the convinience of cellphone banking and plastic money, which is typical of retailers in most well up economies. However in the case of retailers in Zimbabwe its an economic paradox given the harsh economic situation.

  • Daylight robbery, over pricing