OK Zimbabwe Q1 volumes contract on COVID-19

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  • Sales volumes down 32.7%
  • Inflation adjusted revenue declined by 13%

Harare- OK Zimbabwe Limited registered a dip in sales volumes in the quarter ended 30 June 2020 (Q1 2020) as the market has been experiencing instability due to the COVID-19 pandemic.

In a trading update, the company said sales volumes in the period under review went down by 32.7% compared to the same period last year.

The COVID-19 pandemic led to the implementation of a nationwide lockdown which in turn limited trading for businesses and minimized movement of people.

This according to the Company disrupted production and supply to its stores as well as constrained activity in its stores.

In addition, currency depreciation resulted in frequent price increases in a situation of limited disposable incomes leading to lower consumer demand.

The company however says despite the challenges it faced its stores were reasonably stocked since the lockdown started on 30th March 2020.

Inflation adjusted revenue in the period was 13% below the prior comparative period while it grew by 661% in historical terms.

In order to minimize the spread and impact of the COVID-19 pandemic, the company has implemented measures that include temperature checks for its stakeholders, allowing a limited number of customers in the stores so as to promote social distancing, engaging suppliers to ensure availability of merchandise for trading in the stores among other things.

On the outlook, the company says its operations are sound and it should continue to be viable business in spite of the COVID-19 pandemic which is expected to persist for rest of the year.

Equity Axis News

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