Growth in all segments drives Meikles to profitability

Harare – Hospitality and retail group, Meikles Limited revenue for the half year ended September 30, 2018 grew by 30 percent to $330.8 million from $254.0 million in the comparable period, buoyed by growth in all its segments.

Profit after tax from continuing operations grew by 467 percent to US$15.3 million from $2.7 million achieved the previous year.

Profit after tax for the period surpassed the result for the full financial year ended 31 March 2018 of $7.7 million by 99 percent.

In the period under review, Earnings before interest, tax, depreciation and amortisation “EBITDA” for the period rose by 107 percent to $31.5 million from the previous year’s result of $15.2 million

The Group said progress is being made in raising long term finance. On completion, short term loans and overdue current liabilities will be paid off.

In TM Supermarkets trading as TM PnP, the Group said revenue for the period amounted to $305.6 million, a growth of 32 percent from $232.0 million in the previous year.

“The rise in revenue was underpinned by a considerable growth in the number of units sold. EBITDA for the period grew by 65 percent to $21.8 million. Profit after tax grew by 107 percent to $13.9 million from $6.7 million in the previous year.

“Refurbishment works are in progress at five branches with completion expected before the commencement of the festive season,” said John Moxon in a statement accompanying the Group financial results.

During the period under review Tanganda’s revenue grew by 22 percent to close at $15.7 from US$12.9 million achieved the comparable period.

“Average international bulk tea export price for the period was $1.68/kg compared to $1.65/kg in the six months period to 30 September 2017. Bulk tea production of 3 886 tonnes grew by 26 percent from 3 077 tonnes produced in the comparative prior year period.

“The volume of Macadamia nuts sales grew by 70 percent to 374 tonnes. Average price of $4.82/kg was 16 percent above $4.14/kg realised in the previous period. Avocadoes’ results will be reflected in the second half of the year.

“EBITDA for six months ended 30 September 2018 grew by 180 percent to $8.4 million from US$3.0 million generated during the comparable period. Profit after tax grew to $5.6 million from $0.6 million in the previous year.”

The hospitality sector’s revenue grew by 18 percent to $10.3 million from $8.7 million achieved during same period last year.

At Meikles Hotel revenue per available room “RevPAR” rose by 35 percent underpinned by growth of both room occupancy and average room rate.

The Victoria Falls Hotel RevPAR grew to $198 from $188 achieved the previous year.

EBITDA in the segment grew by 62 percent to $3.4 million from US$2.1 million in the previous year. Profit after tax for the six month’s period was $1.4 million, a growth of 175 percent above the previous year.

The Group said refurbishment works at The Victoria Falls Hotel will commence during the last quarter of its financial year.

In the period under review, Meikles Mega Market operations closed due to working capital constraints.

EBITDA for the period was a loss of $1.2 million compared with a loss of $1.8 million in the previous year.

Meikles said funding arrangements for working capital requirements are being secured and new store models are being developed.

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