OK Zimbabwe Limited

OKZ.zw | HY2014 results’ analyst presentation

By Published On: November 21st, 2013Categories: Corporate announcement

OK Zimbabwe announces the release of the analyst presentation for the unaudited results for the six months ended 30 September 2013. Below is a summary of the performance review:

Performance review

  • Sales growth of 5.4% (inflation at September year on year was 0.86%; subdued GDP growth)
    • decreasing demand caused by tight liquidity and limited disposable incomes
  • Gross margin at 16.9% (2012 : 17.0%) – competitive pressure endures and higher consumption of low margin basic items continues. Initiatives continue to improve it through procurement.
  • Net Overheads up 5.9%
    • depreciation of newer equipment
    • advertising and promotional expenses to compete for retail $
    • more staff engaged to provide adequate service in improved facilities and broadened product offering. Financial services income is growing.
    • more use of the Distribution Centre to supply branches with imported product received centrally
    • High cost of utilities
    • Cost of security
  • Stock holding more than month forecast sales; slowdown in demand
  • Capital expenditure $6.3 million (H1 F13: $7.3 million) – timing
  • Cash position good – balance $15.9 million (F 13 $15.6 million)

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