Zimbabwe’s Meikles posts solid performance as revenues grow 50.8%

ZIMBABWE – Meikles Limited, operators of TM Pick n Pay retail outlets in Zimbabwe, reported posted financial positives across all segments for the year ended March 31, 2019 as revenues grew 50.8% to US$791.6 million

The company, which manages several brands across the retail, agriculture and manufacturing segments, saw its profits during the period skyrocket to US$66 million compared to a measly US$8.2 million in the previous year. 

The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) went up from US$40.6 million in 2018 to US$101.5 million in the year to March 31, 2019.

The company’s supermarkets segment, which trades as TM Pick n Pay, recorded growth in revenue by 53.2 percent while EBITDA also followed the upward trend from US$34.5 million in 2018 to US$69 million.

The group’s agricultural concern operating under Tanganda also contributed much to the positive financials on the back of firm international bulk tea prices up to October 2018.

The segment was also boosted by new crops; macadamia nuts, avocados and coffee in addition to an investment in a new world-class IMA tagless tea-bagging machine.

Going forward the group expects to record strong performance as a result of favourable exchange rates and the subsequent introduction of the interbank market for trading the RTGS dollars against other currencies.

“Post year end, the exchange rate between the RTGS$ and US$ moved significantly impacting favourably on the Group’s exporting segments.

“Consequentially, the company now has the ability to eliminate all short-term borrowings and creditors in arrears from operating cash flows.

In this regard, shareholders should also consider sums to be realised from the sale of Meikles Hotel, and the additional planned funding initiatives,” said the group’s Executive Chairman Mr Jonh Moxon.

With the development, Meikles is positioned to reduce debt burdens and realise gains from envisaged investment funds as well as from the purported disposal of Meikles Hotel.

According to a report by the Herald, the decision to curve out Meikles Hotel emanates from the company considering itself off the position to commit an initial forecast of US$30m to upgrade it to a 5-star property by international standards.

The outlook is further expected to be positive with the said investment funds as well as job evaluation and enhancement at board level;

“The group will benefit from the provision of both local and international investment funds for the use of group expansion and financial security.

“The board recognises that additional skills at board level in the Holding Company and at board level in Group companies will be required to ensure the Group responds to challenges and meets the stringent requirements that will emanate from the investment funding,” said Mr Moxon.

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