HARARE – Meikles Limited claims to be financially sound, with cash and bank balances totalling more than US$19 million, allowing the business to keep up with its expansion plans.
The group secretary, Thabani Mpofu, stated in a trading update for the quarter ended December 31, 2022 that despite the changing operating environment’s obstacles, the company is nevertheless confident about its future.
“The group has no bank borrowings. Both expansion and replacement capital expenditure plans continue to be implemented as the group has adequate financial resources at its disposal,” he said.
Mpofu noted that because of the government’s policy measures to stabilise prices and the exchange rate beginning in July 2022, the trading environment for the quarter under review was marked by tighter financial conditions.
He said that the policy changes have improved both inflation and the exchange rate.
“However, electricity supply challenges worsened during the quarter under review leading to increased use of generators and in some instances reduction in operating hours,” he said.
Although the supermarkets segment’s sales volumes declined by 16,49% during the quarter under review, they remained resilient in the face of operating environment problems and increased by 2,50% for the nine months that concluded on December 31, 2022.
Over the quarter and nine months, respectively, room occupancy for the hotel sector increased by 9,85 and 18,43 percentage points.
In US$ terms, revenue per available room rose by 94 percent during the third quarter and by 210 percent for the first nine months.
Inflation-adjusted group revenue increased by 40% and 58%, respectively, during the quarter and the nine months, according to Mpofu.
In comparison to historical costs, group revenue increased by 399 percent and 411 percent, respectively, during the third quarter and nine months.
“All operating subsidiaries generated positive cash flows during the period under review,” Mpofu said.
He said that during the reported quarter, the supermarkets segment finished and opened two new stores, Pick n Pay Madokero and Pick n Pay Simon Mazorodze.
He mentioned that operating cash flows are used to pay for the renovation and development of the branch network.
- additional report by BH24
