TM Supermarkets props up stuttering Meikles

Hospitality and retail group Meikles Limited’s topline grew one percent to $457.6 million in the full year to March, driven by an impressive performance of its retail segment as revenues from other segments plummeted.

TM/Pick n Pay Supermarkets contributed 90.5 percent to total revenue.

The retailer’s revenue grew by 5 percent to $414 million from $395.3 million in the preceding year despite waning aggregate demand.

Chairman John Moxon said the supermarket segment has been achieving revenue growth annually since 2013.

Although operating costs grew by 7 percent owing to incremental costs of new branches, earnings before interest, tax, depreciation and amortisation (EBIDTA)  from the  supermarkets segment grew by 50 percent to $23.8 million on operational efficiency.

Groupwide net operating costs fell by 2 percent on prior year, translating to a net $7.8 million reduction in costs and offsetting an increase in rentals paid by supermarkets.

The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) doubled to $24.8 million from $12.2 million achieved in the prior year.

Profit before tax recovered to $5.3 million from a previous loss of $17.8 million in the prior year

After tax loss narrowed to $746 000 from $22.675 million previously.

South Africa’s Pick n Pay, which controls 49 percent of the grocery chain, in April put its share of TM’s earnings at R80.2 million (about $6.2 million).

Borrowings were lower at $66.2 million from $78 million in the previous year, with finance costs falling 13 percent to $9.2 million.

Moxon said the group is working on the restructuring of its short-term debt to medium-term.

Total assets increased to $282.7 million from $281.1 million in the previous year.

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