By Alois Vinga
LISTED clothing manufacturer and retailer, Edgars Stores has acknowledged the impact of the current stable exchange rates and increased internal foreign currency generation for spurring the group’s recovery.
The remarks come at a time when authorities have instituted a raft of measures to contain high inflation levels, which receded to 280,4% in the month of September 2022 down from 285% which was recorded in the month of August 2022.
Month-on-month inflation rate in September 2022 was 3,5% after recording a significant decline from 12,4% recorded in the month of August 2022.
High inflation rates have been established to share a close link with the depreciation of the exchange rates prompting authorities to choke all the supply conduits for excess money used to fuel the parallel market activities.
Having seen the group realising revenue of ZW$10,33billion which is 114% up from that achieved in 2021 of ZW$4,82billion, Edgars Stores Limited chairman, Thembinkosi Sibanda hailed the obtaining stable exchange rates.
“The recovery to the business is premised on the back of improved access to foreign currency through domestic sales to cover import requirements, a stable exchange rate and slower inflation,” he said.
Going forward, Sibanda said smart merchandise procurement remains a key focus area to ensure that investment in inventory is kept at optimal levels in order to improve stock turns without compromising merchandise quality and sales volumes.
“Some measure of macro-economic stability is being noticed following the relaxation of the use of the foreign currency for domestic transactions as well as other various measures which, if successful, will help stabilise the foreign exchange market and start to tame inflation,” said Sibanda.
The group’s profitability before tax reached ZW$285 billion which was 891% up from ZW$287million achieved in the prior year.
The growth terms were also attributed to volume recovery, replacement cost based pricing, ongoing cost management practice as well as initiatives
implemented by management to ensure fresher stock availability in our stores, regardless of the supply chain challenges.
Total Group units sold increased by 35% from 0.94million to 1.27million compared to the same period last year.