OK Zim FY21 profit down by half
Harare, (New Ziana) – Retail chain, OK Zimbabwe saw its inflation adjusted net profit for the year ended March 2021 tumble by half to $1 million as the group suffered from the effects of the Covid-19 lockdowns.
The year before, the retailer reported a profit after tax of $2 million.
Revenue for the period under review was down to $32.3 billion from $35 billion in 2020.
“The operating environment for the financial year under review was affected by Covid-19, with lockdown restrictions in place throughout the period,” said chairman Herbert Nkala.
“The lockdown measures negatively impacted business through supply chain disruptions and reduced consumer disposable incomes.”
The drop in profitability saw attributable earnings per share slide to 86.45 cents from 163.29 cents.
The group declared a final dividend of 54 cents, bringing the total dividend for the year to 80 cents.
Outbreak of the Covid-19 pandemic saw the group fail to hold its popular annual grand challenge, Nkala said.
The chain opened two new stores in Harare and Victoria Falls while a number of branches were upgraded, the chairman said.
“The Group embarked on a brand repositioning exercise for all its store brands, namely OK, Bon Marché and OK Mart to meet emerging customer requirements and market trends,” Nkala said.
In the outlook, Nkala said the future remained uncertain as a result of Covid-19, but the group’s financial status remained solid.
“The economy is expected to benefit from the anticipated good harvest from the 2020/2021 agricultural season, availability of foreign currency on the auction system and declining inflation,” he said.
“The group has been investing in capacity enhancement and is therefore well poised to maximize on the anticipated economic rebound.”