Edgars records decrease in profits after retrenching
Edgars Stores Limited saw its profit decreasing to $500 000 in 2016 from last year’s $4,5 million after the group undertook its first retrenchment exercise in 70 years.
Speaking to analysts in Harare yesterday, group managing director Linda Masterson revealed that the retrenchment exercise cost $2,5 million. She said that retail sales were down by 19,2%. Cash sales and credit sales were down by 12% and 22,3% respectively. Credit sales constituted more than half at 68,4% with cash sales accounting for 31,6%.
Borrowings at year-end were $11,25 million down from $18 million. Edgars projects a 5% growth in turnover with profit after tax expected to rise by 400%. Retail sales for the Edgars chain decreased by 24,6% on 2015 figures. Jet chain sales decreased by 7,6%. Carousel recorded a 28,7% decrease in sales. Masterson said they were facing product sourcing challenges due to foreign currency shortages and also lost sales in the transition period from the old system to the new one.
More: NewsDay
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