The SA & Zim supermarkets’ partnership lean balance sheet and no borrowings mean that the firm can reinvest all their earnings towards growth..
Pick n Pay is raking in the profits from Zimbabwe and its partner in the struggling country is now looking to open more stores buoyed by stronger performance from its other operations across city and resort hotels as well as agro-processing.
The SA grocer has a partnership with Zimbabwe’s Meikles Limited in the TM Pick n Pay Supermarkets which competes with OK Zimbabwe and other smaller operators. There are about 55 stores – some of them co-branded – under the partnership in Zimbabwe and the two parties say they intend to open more this year.
“The segment plans to open a number of new stores and there will be further upgrades of existing stores,” John Moxon, chairman of Meikles Limited said on Friday.
Meikles said on Friday that revenue in the supermarkets division jointly owned together with Pick n Pay had risen from US$414 million to US$487.8 million in the year to the end of March. EBITDA earnings in the retail division rose from US$23.8 million to US$34.5 million.
The further expansion bid for Pick n Pay in Zimbabwe is underscored by the absence of borrowings on the chain’s balance sheet. This means that all resources at its disposal will be put into growth strategies…
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