LIVINGSTONE MARUFU
Listed retail outlet, OK Zimbabwe revenue was 13% down in the past three months ended June 30 compared to the same period last year due to as the lockdown measures to combat the spread of Covid-19 limited trading hours and the movement of people.
The pandemic has seen government coming up with restrictive measures as it moves to contain the spread of the virus which had claimed 81 lives in Zimbabwe by Tuesday.
The number of confirmed cases now stands at 4,221 as of Tuesday from 8 in March.
In a trading update for the quarter ended June 30, OK Zimbabwe company secretary Margaret Munyuru said the business environment continued to be challenging due to instability in the market as the reduction in operating hours disrupted production and supply for stores and constrained activity.
“Revenue for the quarter was below prior year by 13% (inflation-adjusted) and grew by 661% (historical adjusted) over the same period.
Sales volumes for the quarter were 32.7% below the same period last year,” Munyuru said.
She said the currency depreciation resulted in frequent price increases at a time when there is limited disposable income leading to subdued demand.
Currently, the consumer basket for a family of six has topped ZWL$13 700, an amount that most people cannot afford.
This year, OK Zimbabwe could not run its biggest annual promotion, the OK Grand Challenge Promotion, because of the coronavirus disruptions.
Munyuru said the listed retailer will continue engaging suppliers to ensure the availability of merchandise for trading in the stores.
Despite Covid-19 and inflation, profit margins are within expectations, she said. Munyuru said the company remained solvent as it is capable of settling all its obligations as they fall due as well as continue operating profitably.
“In addition, the company has banking facilities in place which can be utilised if the need arises,” she said.
