OK Zimbabwe’s revenue rose by 1 180% to $22,382 billion for the year ending September 30, from $1,749 billion recorded during the same period last year despite having most of its products controlled against rising input costs.
ify>During the period under review the retail giant lamented the manner in which price monitoring and controls of commodities was carried out.
“Price controls remained for three basic products; namely maize-meal, flour and bread while 16 other products remained on monitored list.
“However, in the latter part of the period under review there appeared to be confusion in the enforcement of the law on controlled goods as, on occasions, no distinction was made between controlled, monitored and uncontrolled products,” said OK Zimbabwe in a statement.
Operating profit stood at $2,045 billion from $181 million achieved last year.
In spite of negative real returns rampant on the money market, the group recorded a 2 020% increase in net interest income to $1,346 billion.
Sales growth of 1 261% was ahead of average official inflation of 1 107% but below average internal inflation of 1 670%.
Gross margins decreased to 21,44% from 24,69% the prior year due to the adopted sales mix and managed approach to replacement pricing.
The company said an operating income ratio of 9,73% was consistent with the drop in gross margins. — Staff Writer.