HARARE – Meikles Limited, a diversified Zimbabwean conglomerate, has reported significant revenue and profit growth despite a complex and challenging economic environment in Zimbabwe.
In its trading update for the third quarter ended November 30, 2024, the company reported that performance was notably impacted by the Reserve Bank of Zimbabwe’s (RBZ) 44% devaluation of the Zimbabwean dollar (ZWG) in September 2024, which contributed to inflationary increases in both revenue and profits.
Meikles’ supermarket division experienced an 8% increase in sales volume for the quarter and a 2% increase for the nine-month period. Management attributed this growth to a focus on maintaining stock availability across all stores.
The percentage of revenue collected in US dollars remained stable at 19% for the quarter, while increasing to 21% for the nine-month period, up from 17% in the previous year.
The company’s hospitality segment also showed positive results, with room occupancy rising to 44% for the quarter, up from 42% in the same period last year. Occupancy for the nine months also reached 44%, compared to 41% in the previous year.
The average room rate and revenue per available room increased by 2% and 9%, respectively, over the nine-month period.
Overall, Meikles reported a 54% increase in group revenue for the quarter, driven by the exchange rate adjustment and volume growth across all segments.
For the nine-month period, group revenue grew by 7%, marking a recovery from the 20% decline recorded in the first half of the year.
Profit after tax for the quarter reached ZWG 73.4 million, a significant turnaround from the ZWG 4.5 million loss recorded in the same period last year.
For the nine months, profit after tax increased by 87% to ZWG 67.9 million, reversing the ZWG 5.6 million profit recorded in the first six months.
The company emphasized that all operating subsidiaries generated positive cash flows during the period, and its financial stability remains strong, supported by US dollar cash reserves in its offshore subsidiary.
Despite the ongoing economic challenges, Meikles remains optimistic about its future prospects.
The company expressed confidence in its ability to adapt to the evolving operating environment and confirmed that its capital expenditure plans are proceeding as scheduled, supported by adequate financial resources.
“Despite the challenges of the evolving operating environment, the Group is optimistic about its prospects,” stated Thabani Mpofu, Company Secretary, in the trading update.
“We are confident of the Group’s ability to adapt to the evolving operating environment. The capital expenditure plans for the year continue to be implemented, as the Group has adequate financial resources.”
