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Enacy Mapakame-Business Reporter

Diversified hospitality group Meikles Limited saw revenue for the half-year to September 30, 2022 jump 30 percent to $129,3 billion driven by growth in the supermarket segment, TM Pick n Pay.

The supermarket chain, which accounts for 99 percent of the group’s total revenue, recorded a 15 percent increase in units sold, which, together with price adjustments helped lift the group’s earnings.

Profit before tax for the period increased by 10 percent to $8,2 billion compared to the same period last year, translating to a profit margin of 6,34 percent.

On a like-for-like basis (excluding $3,3 billion investment income received last year), profit before tax grew by 95 percent.

Other comprehensive income increased to $14,3 billion from $49 million in the previous year due to the increase in the exchange rate applied to translate the foreign subsidiary financial results to local currency, which is the group’s presentation currency.

Profit for the period fell 41 percent to $2,4 billion while basic earnings per share went down 60 percent to $4,07. Total assets grew 29 percent to $84 billion.

Group chairman John Moxon said the group maintained a strong financial position during the period, with a significant foreign currency-denominated bank balance, in addition to low bank borrowings.

Revenue from the supermarket segment rose 67 percent to $127,8 billion ahead of the $76,2 billion recorded during the same period last year.

According to the group, units sold grew by 38,53 percent during the first quarter of the period under review before declining by 4,40 percent during the other quarter, reducing the overall growth for the six months to 15,46 percent.

“The measures introduced by the authorities to curb rising inflation, starved the economy of Zimbabwe dollar liquidity leading to reduced customer spending,” said Mr Moxon.

Profit before tax at TM Pick n Pay for the period amounted to $8,2 billion, compared to $5,1 billion achieved in the same period last year.

The segment opened a new store in Harare during the period under review while refurbishment of the Triangle Store was completed. Work is underway on three new stores that are expected to come on stream during the first quarter of next year.

The hospitality segment’s operations in Victoria Falls registered a strong recovery from Covid-19 disruptions to international tourism and travel as room occupancy for the period under review grew from 12,9 percent to 32,5 percent. Resultantly, revenue grew 244 percent to $1,3 billion while profit for the period grew to $1 billion from $398 million in the previous year.

The completion of the first phase of the hotel refurbishment coincided with the rebound in international tourism.

As for the properties segment, the refurbishment of the building along Robert Mugabe Road in Harare commenced during the period under review, with completion anticipated during the first quarter of next year. TM Pick n Pay is the anchor tenant.

Mr Moxon indicated that in the forthcoming financial year, all remaining properties will be developed to maximise rental income opportunities.

The group was well positioned to execute its development plans as it has substantial resources to support its strategies.

He said: “To this end, capital projects in progress across the subsidiaries will be completed as planned. Sales volume growth increased satisfactorily in TM Pick n Pay post-September 2022.”

The group declared a dividend US$0,25 cents a share.