Categories: Stories

OK profit up 175 percent

Retail chain OK Zimbabwe saw its turnover in the six months to September increase by 129 percent from $6.6 billion to $15.1 billion but it says the growth was largely inflation driven as volumes continued to decline due to the erosion of consumer purchasing power and the shortage of some commodities.

It earned a net profit of $1 billion, an increase of 175 percent from $366 million, and says margins were maintained because of strategic stock purchases.

The company says its effective tax rate remained at 13 percent. The tax rate had been maintained at this level because of the high capital expenditure on the Point of Sale computerisation project and special allowances on hire purchase debtors.

The company has opened two new stores, one in Gwanda and another in Chinhoyi and says it is considering opening new stores elsewhere.

(33 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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