Source: TM Pick N Pay navigates turbulent terrain -Newsday Zimbabwe
In its trading update for its third quarter performance ended November 30, 2024, Meikles revealed that the ZiG devaluation last September led to an inflationary increase in revenue.RETAILER, Meikles Limited (Meikles) has enough financial resources to navigate the complex and challenging environment driven by exchange rate induced inflationary pressures, NewsDay Business understands.
In its trading update for its third quarter performance ended November 30, 2024, Meikles revealed that the ZiG devaluation last September led to an inflationary increase in revenue.
“Despite the challenges of the evolving operating environment, the group is optimistic about its prospects,” Meikles said.
“We are confident of the group’s ability to adapt to the evolving operating environment.
“The capital expenditure for the year continue to be implemented, as the group has adequate financial resources.”
During the period under review, the group revealed that the supermarket’s sales volume increased by 8% for the quarter and by 2% for nine months.
“Management focused on ensuring the availability of the stocks across all the stores in a harsh and complex trading environment,” Meikles said.
“The percentage of revenue collected in USD during quarter remained steady at 19%, the same of last year. For the nine months, the percentage of revenue received in USD rose to 21%, up from 17% the previous year.”
Meikles said group revenue grew 54% for the quarter, driven by the upward movement in the exchange rate and sales volumes growth across all segments.
While most of its revenue comes from its supermarkets, Meikles also gets its hospitality business.
“Group revenue grew by 7% for nine months, marking recovery from the 20% decline recorded for the six months ended August 31, 2024,” Meikles said.
“Profit after tax for the quarter stood at ZiG73,4 million, compared to a loss of ZiG4,5 million in the same period last year.
“For nine months, profit after tax grew by 87% to ZiG67,9 million, a turnaround from ZiG5,6 million recorded during the preceding six months that ended 31 August 2024.”
Meikles said all obtaining subsidiaries generated positive cash flows during the period and the group remained strong, bolstered by the US cash balance from its offshore subsidiary.
“While the operating environment’s challenges continue to evolve, the growth momentum in the number of units sold in the supermarket segment persisted beyond August 31, 2024. Units sold increased by 8% during the third quarter ended November 30, 2024,” Meikles chairman John Moxon said.
“Adjustments to strategy and operations in response to evolving market conditions will be key to maintaining this momentum.
“The group is optimistic about its performance across all segments for the remainder of the financial year and beyond, anticipating that every segment will trade profitably.”
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