OK Zim says Covid-19 hit on sales

Harare (New Ziana) -Retail giant, OK Zimbabwe said on Monday its sales volumes for the three months ended 30 June were 32.7 percent below the same period in the prior year owing to limited trading hours, cancellation of its annual promotion due to the coronavirus pandemic.

Inflation adjusted revenue for the quarter declined by 13 percent while in historical terms it increased seven fold over the same period.

“The Covid-19 pandemic and the resultant lockdown measures limited trading hours and the movement of people. The reduction in operating hours disrupted production and supply to our stores as well as constrained activity in our stores,” the company said in a trading update.

Currency depreciation resulted in frequent price increases in a situation of limited disposable incomes, leading to subdued demand during the period under review.

“Profit margins are within expectations.”

The company said stores were adequately stocked since the onset of the nationwide lockdown.

It said banking facilities were in place, which could be utilized when the need arose.

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

In the outlook, the company said operations were sound and it should continue to be a viable business.
New Ziana