What retailers financials say about the state of Zimbabwe’s economy

Zimbabwe is good for business. Retail business.

The country is frequently listed among treacherous economies where only intrepid investors dare tread, but those who have bet on Zimbabwe’s retail sector appear to be extracting good value.

This is borne out by the largest retailers operating in the country: OK Zimbabwe, TM Supermarkets and Choppies all of whom are delivering good value to their shareholders after impressive performances according to recent financial results.

OK Zimbabwe, the largest grocery chain with 63 outlets, last week reported an after tax profit of $6.06 million, a growth of 801 percent  from the $672.29k recorded previously, while earnings per share (EPS) advanced 768 percent to 0.52 cents.

Revenue grew eight percent to $472.4 million in the full year to March 31.

The revenue for FY 2017 is the third largest haul for OK, following the peak of $483.7 million in FY2014 and $479.6 million in FY2013.

South Africa’s retail giant Pick n Pay says its Zimbabwe associate, TM Supermarkets (TM)’s earnings grew 74.7 percent on last year to R80.2 million ($6.2 million)  in the full year to February 26,  representing growth in local currency terms of 71.8 percent.

TM Supermarkets now has 56 stores in Zimbabwe, 16 of which trade under the Pick n Pay banner.

Additionally, Botswana Stock Exchange-listed supermarket retail chain Choppies says its Zimbabwean operation, with 30 outlets, recorded an annual revenue of $117.44 million for the full year 2016.

Another company in a similar space, Simbisa Brands, which operates quick services restaurants in Africa, also recorded the same impressive performance in its Zimbabwe operation, with revenue for the six months to December at $48.9 million,  registering a seven percent increase in customer counts.

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