Meikles projects bullish outlook
RYAN CHIGOCHE
Listed hospitality group, Meikles Limited, is painting a rosy picture in the outlook despite the harsh operating environment.
The bullish outlook comes after the group posted a growth in revenue and profit before tax in the quarter to June 30, 2022.
“The group is optimistic about its prospects despite the evolving challenges in the operating environment. Both expansion and replacement capital expenditure plans continue to be implemented,” company secretary Tabani Mpofu said in a trading update for the period.
In its trading update for the quarter to June 30, 2022, revenue for the group grew 88%.
Profit before tax also increased 79% in the reviewed period compared to the same period last year.
Sales volume for the supermarket grew 39% for the period compared to the same period in the previous financial year.
Room occupancy levels increased to 35% in the reported period from 11% in the prior comparable period as the segment benefitted from the easing of pandemic restrictions.
The average room rate and revenue per available room grew by 36% and 327% in US$ terms respectively with foreign guests constituting 90% the other 10% being local.
Mpofu said exchange gains on the group’s US$19m cash balance from the disposal of the investment in Mentor was ZWL$ 6.7bn and is included in other comprehensive income.
He said 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.
