Retail group, Tedco, joined the group of companies lamenting the “very difficult economic environment” but at the same time making hefty profits. Though it said retail demand, especially for high ticket items continued to weaken in the first half of the year, ending in March, it still recorded a 374 percent increase in net profit.
The profit of $1.3 billion surpassed that of the full year ending September which was $1 billion. Its profit for the first half of last year was $274.6 million. Even in inflation adjusted terms, its profit shot up from a loss of $430.6 million to $502.7 million.
The company says its manufacturing business had a good run, buoyed by exports. And in anticipation of good times to come, it invested over $1 billion in acquisitions to expand its manufacturing and retail divisions.
Turnover increased from $1.7 billion to $5.7 billion. That for the full year to September was $4.1 billion.
The company says it acquired three retail properties and also invested in a clothing manufacturer and is looking for new sites and acquisitions to strengthen its cash sales business and its fast growing House of Kumali brand.
The retail division will open four new stores in the second half. The furniture business is doing extremely well with sales increasing fourfold. Exports to South Africa continued to surge while those to Zambia had been reduced because of VAT problems.
It is establishing a new Export Processing Zone at its Modfur factory in Bulawayo to cater for Botswana, South Africa and Namibia. It says the strengthening of the rand is benefitting its exports and so would a resolution of the VAT problem with Zambia.