OK Zimbabwe anticipates COVID-19 induced volumes decline in Q1

  • Lockdown expected to slow down volumes for the quarter
  • CAPEX for 2019 stood at ZWL236.4 million due to the continued refurbishment programme
  • Revenue and profit for 2019 grew by 464% and 1 050% respectively

Harare – OK Zimbabwe anticipates a volumes decline in the first quarter to 30 June 2020 due to COVID-19 pandemic and economic depression.

In a statement accompanying the group’s financial results, OK Zimbabwe expects volume performance for the first quarter of the current financial year to significantly decline from prior comparable period last year.

According to the group, internally generated funds were adequate to fund working capital and capital expenditure requirements hence no borrowings were utilised in the year.

Capital expenditure for the year was ZWL $236.4 million, up from ZWL $25.8 million in prior year as the group continued with its refurbishment programme.

For the year ended 31 March 2020, revenue for the group grew by 464% to ZWL $4,525.6 million from ZWL $801.9 million in prior year while profit after tax increased by 1,050% to ZWL $566.2 million from ZWL $49.2 million in prior year.

Overheads grew by 427%, 37 percentage points below growth in revenue with generator fuel costs for alternative power, electricity costs, maintenance costs and spares, bank charges and rentals being the major growth drivers.

The group also declared a final dividend of 9 ZWL cents per share is to be paid to the shareholders on or about 3 July 2020.

The group added that the final dividend brought the total dividend declared for the year to 13 ZWL cents per share.

On the outlook, the group alluded that the COVID-19 pandemic has disrupted supply chains, hence the group will work closely with suppliers to ensure adequate product supply.

Ok Zimbabwe also said hyperinflation and a constrained sales performance make cost control a key area of focus for management in order to protect margins.

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