OK Zimbabwe says volume sales fell 11.33% for the quarter and 9.37% for the nine months to December 2022 weighed down by slowing demand.
This comes as consumers are taking a more cautious approach to shopping as inflationary pressures continue to affect their spending power.
A significant annual inflation rate that frequently exceeded 200% characterized the trading climate during the period under study, according to the company.
“However, the monthly inflation rates showed signs of slowing down towards the end of the quarter as measures instituted by fiscal and monetary authorities began to bear fruit. Liquidity constraints were witnessed in the last three months of 2022 resulting in dampened consumer demand.
“The group embarked on a volume recovery plan which resulted in a growth of 3% being recorded for the month of December 2022 compared to the prior year,” the company said in a trading update.
As of financials, the company’s inflation adjusted revenue rose 18.3% for the quarter and 28.4% for the nine months.
“Profit margins are consistent with the prior year and in line with the group’s plans for the current year.”
Like any other business in the sector, the company was not spared from the power challenges. It had to resort to diesel powered generators to avoid business interruptions.
“We can only urge the authorities to provide more incentives for productive sectors to invest in growth projects and stave off current operational cost increases necessitated by power shortages and exorbitant fuel costs,” it said.
“Despite the challenging environment, the Group continues investing in volume growth strategies embedded in various strategic projects which have a high potential to contribute to growth and improve the overall business performance in the last quarter of F23 and the coming financial years.”
In Glen View, OK Zimbabwe Limited established its first in-store pharmacy that operates under the Alowell Pharmacy name.
“Roll out of more pharmacies is planned in various other branches during the last quarter of 2023,” the company said in its outlook – Harare