Edgars expects significant growth in profit, banks on economic rebound

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    Harare – Clothing retailer, Edgars Stores Zimbabwe Limited said it expects profit after tax for the 2019 financial year at or above 40 percent from the current level amid intensifying efforts in working with local suppliers to develop and improve the quality, fashionability and on-time delivery of wanted products.

    “Management will continue to deliver profit growth to all our stakeholders,” the Company said.

    The upbeat comes as the Group reported a 114 percent increase in profit for the full year ending 6 January 2018 to $8.5 million from $3.98 achieved in the prior year.

    Revenue for the period increased by 22 percent to $78.1 million from $64.1 million achieved in the same period in 2017 while its gearing “remained healthy” at 0.20 up from 0.15 in 2017.

    Speaking on the company’s 2019 business outlook during an analysts briefing in the capital on Wednesday, Edgars managing director Linda Masterson said revenue is also expected to grow by 35 percent while gearing should increase by at least 30 percent.

    The Company took note of the current economic challenges in Zimbabwe characterised by high inflationary pressures and high degree of uncertainty, saying that it is optimistic that economic measures being pursued by the government such as the promised fiscal discipline measures will bear positive results.

    “My own view is that we will see some stability and downward pressure in prices, which is going to be good for inflation and the economy as a whole,” said Masterson.

    Stability in prices will come as real test for most businesses whose revenue performances has been mainly drive by firm price mix which spiralled to high levels last year while volume trends appeared to be taking a downward turn.

    Edgars for instance recorded a decrease in units sold for both its Edgars chain and stores and Jet stores.

    -Equity Axis News

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