• Mon. Apr 15th, 2024

Meikles anticipates $14,4 billion FY23 profit

ByEconomic Times

Jul 5, 2023

By ETimes

Listed diversified entity, Meikles Limited announced that it expects its group profit for the year ending February 28, 2023 to be $14,4 billion in historical terms.

In a dividend announcement, company secretary Thabani Mpofu said, “The Group profit before tax for the year is estimated at ZWL 14.4 billion in historical cost terms. The financial statements for the year ended 28 February 2023 are expected to be published by July 14, 2023.”

The figure will be an improvement after the conglomerate reported an inflation adjusted net profit after tax of $2,7 billion for its half year ended September 30, 2022. The performance was a 56 percent decline from the 2021 comparative.

Exchange and monetary gains of $2,9 billion and $6,8 billion contributed significantly to the group’s financial performance. Otherwise, net operating profits fell by 132 percent to a loss of $1,28 billion, while gross profits gained 34 percent to $27,8 billion.

Total half year revenues stood at $129,3 billion. The supermarkets segment recorded revenue growth of 68 percent to $127,1 billion. Sales volumes grew by 38,5 percent during the first quarter of the period, but declined by 4,4 percent in the second quarter to leave overall growth at 15,46 percent.

The group attributed the deceleration in growth to reduced consumer spending due to the restricted local currency liquidity, but this will be different as there was a huge excess liquidity in the second half of the year.

The conglomerate declared a US$0.008 final dividend for the year ending February 28, 2023.

“Notice is hereby given that the Board of Directors declared a final Dividend, Number 92 of 0.8 US$ cents per share payable out of the profits for the financial year ending 28 February 2023. The dividend will be payable on or about 8 August 2023,” Mr. Mpofu said.

Beyond the dampened consumer sentiment, exchange rate-related price distortions are likely to drive consumers to informal markets. ETimes, based on half year results, thinks that this will likely constrain the group’s US dollar takings, which may be a concern given the group’s significant trade payables. It could require the group to focus more of its financial resources on maintaining working capital than on capital investments – Harare

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