For the six months ended months ended July 8, 2018, Edgars Stores Zimbabwe has recorded a 235 percent increase in profit after tax with the surge in profit driven by sales growth. The company reported a profit after tax of $1,9 million, representing a significant increase from a profit of $567 499 reported for the comparable period in 2017.
Edgars board chairperson Themba Sibanda said the performance improvements were in spite of a challenging environment. The Edgars chain’s total sales were $19,5 million up from $15,8 million in 2017, while sales per square meter were $1 958, up from $1 502. Edgars chain debtors were $16,8 million, while Jet’s debtors were at $4,9 million. The Edgars chain’s net write-offs for the period averaged 2,1 percent from 8,7 percent in 2017. The Jet chain’s net write-offs for the period equated to 1,6 percent, from 6,6 percent.
The company’s factory made a loss of $0,3 million after a once- off payment for terminal benefits amounting to $0,2 million.
Said Sibanda:
Despite the challenging environment of foreign currency shortages and the threat this has on margins and merchandise assortments, the group’s sales of merchandise has grown from $24,1 million in the half year to June 2017 to $31,1 million in the same period in 2018, an increase of 29 percent,” the chairperson said in a statement accompanying the company’s financial statements.The Jason Moyo branch in Bulawayo is currently being revamped and the Masvingo branch is set for a revamp in the second half of the year.The Marondera branch was revamped during the period under review and the Masvingo branch is planned for a revamp in the second half of the year.We believe the reduced cost structure will align with the export initiatives being pursued.
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