By ETimes
HARARE – Shares in OK Zimbabwe have fallen despite the retail giant reporting comfortable volume growth in the first quarter ending June 30, 2024, amid a challenging operating environment.
The trading period was characterised by foreign currency shortages and policy changes.
Volume, a key indicator of demand for the group, however, was up 20 percent in the first quarter covering April to June 2024 (FY2025 Q1).
“Business performance was driven by the effective implementation of the group’s volume recovery strategies which also saw the improvement in the performance of the group’s premier promotion, the OK Grand challenge,” OK Zimbabwe chief executive officer Max Karombo told a virtual annual general meeting.
Basket size, which refers to the number of units that are in a basket each and every time a shopper comes to shop with the group, went up 28% in FY2025 Q1.
“So this business performance was driven by effective implementation of our group’s volume recovery strategies.”
In the period, fiscal and monetary authorities instituted a number of measures to ensure macroeconomic stability.
“The introduction of the ZWG brought about relative stability in the economy although currency risk remained a key risk during the period,” he said.
“The shortage of foreign currency in the formal channels continues to exert pressure on exchange rate dynamics, with significant impact on pricing consumer behavior and long term financial planning.”
In an uncertain economy, executives’ first instinct, analysts say, might be to cut costs and shore up established holdings.
Going forward, the group indicated that they will focus on strengthening supplier relationships.
OK Zimbabwe’s shares plunged 11.49% to ZWG72.9643c. Accordingly, the retail giant topped Thursday’s fallers table.