Edgars back in the black
RYAN CHIGOCHE
Clothing retailer, Edgars Store Limited, returned to profitability posting a bottom line of ZWL$466m in the 52 weeks to January 9, 2022 from a loss of ZWL$288m incurred in the prior comparable period on the growth in revenue.
Revenue for the group soared 83% to ZWL$6.9bn from ZWL$3.7bn achieved in the previous year.
Total units sold increased by 4.1% to 2.5m from 2.4m.
Board chairman, Themba Sibanda attributed the improved performance to fresh stocks availability and the increased use of foreign currency which increased traffic.
“Trading in foreign currency since April 2020 has allowed our retail chains to improve stock assortments, which in turn has increased traffic in our stores. While a sizable portion of our cash sales are in foreign currency, we believe that this proportion can be increased through favourable and consistent application of regulatory policies around trading in foreign currency,’’ Sibanda said.
Driven by the increased use of foreign currency, the retail segment revenue was ZWL$5.5bn, a 70% increase from prior year with the split between credit and cash sales at 61.2% and 38.8%.
The Edgars chain contributed ZWL$3 bn to the retail segments revenue, up 74% from ZWL$1.7bn the previous year, with 956 000 items sold, up 8% from 887 000 sold in the prior comparable period.
Jet, whose number of stores also increased from 27 to 31 in the reported period, contributed ZWL$2.5bn to the revenue, increasing 79% percent from ZWL$1.4bn as total units sold also increased by 13% during the time, from 1.28m to 1.48m.
The gross retail debtors’ book closed the period at ZWL1.54bn, up 257% from ZWL$431m in thecomparative period as the active account growth increased by 6% to 128 000 from 120 000.
The loan book for Club Plus Microfinance closed at ZWL$151m (2020: ZWL30.3m) representing a 399% increase from prior year.
Edgars manufacturing concern, Carousel, recorded its first export sale to Botswana in the reported period and the group said it is actively looking at more alternative markets.
Investment in various re-tooling and machinists training in the division is currently underway and it will see the division improve its efficiencies as well as expanding on its product offering, Edgars said.
In the reported period the group splurged ZWL$121m on capital expenditure with the money spent towards the acquisition of 4 new stores to the Jet chain.h
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