OK still OK

Retail group OK Zimbabwe saw its sales for the year ending March almost treble from $16.3 billion to $47.7 billion but it says the increase in sales was largely inflationary as volumes were actually down. Average inflation for the period was 160.4 percent.

Both operating profit and net profit were above inflation but the company says disposable incomes have continued to be eroded by inflation which reached 365 percent in June.

Operating profit rose from $1.3 billion to $4.5 billion while net profit increased from $1.1 billion to $3.8 billion.

The company says though the government has announced new economic recovery measures to revamp the economy most macroeconomic fundamentals, such as interest rates, have remained skewed.

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