CONGLOMERATE, Meikles Limited has defied economic challenges to record significant growth across the segments amid optimism of sustaining the growth trajectory going forward.
Presenting a trading update for the quarter ended June 30 2022, the group’s company secretary, Tabani Mpofu revealed that volumes, revenue, and profit growth fared very well despite the tough trading conditions.
“Sales volume for the supermarket grew by 39% for the period compared to the same period in the previous financial year. Stock levels in the stores remain adequate despite disruptions on the supply chain arising from both international and local factors,” he said.
Mpofu said room occupancy for the hospitality segment increased from 11% to 35%, a growth of 24% in comparison to the same period in the previous year with performance attributed to the continued easing of both local and international COVID-19 restrictions.
The average room rate and revenue per available room grew by 36% and 327% in US$ terms respectively with the guests’ mix for the period standing at 90% foreign and 10% local.
“Group revenue grew by 88% and 354% in inflation adjusted and historical cost terms respectively. Profit before tax was 79% up on the same period of the previous year.
“The growth in profit before tax was 791% in historical cost terms, boosted by exchange gains realised on US$ denominated cash balances held by the Group’s subsidiaries,” said Mpofu.
During the period, exchange gains on the group’s US$ 19 million cash balance from the disposal of the investment in Mentor was ZW$ 6,7 billion and is included in other comprehensive income while all operating subsidiaries generated positive cash flows during the period under review.
“The Group’s financial stability remains strong supported by significant US$ cash balances amid optimism about prospects despite the evolving challenges in the operating environment. Both expansion and replacement capital expenditure plans continue to be implemented,” added Mpofu.