- Revenues declined by 17%
- Gross margin dropped by 27%
- Expenses were up 12%
Bata Shoe Company Zambia posted a negative performance for the half year period ended 30 June 2020 due to difficult trading conditions worsened by the COVID-9 pandemic which resulted in a reduction in the footfall in major shopping malls and general markets.
In a half year publication, the company said half year report a negative diluted earnings per share compared to same period last year due to a decline in gross profit, higher retail occupancy and direct store and administration costs and foreign currency loss booked in the period.
Bata said that revenues declined by 17% to K62 million compared to the same period last year.
“Revenues in retail declined by 30 percent compared to last year.
“Non-Retail revenue declined 43 percent due to less export to Zimbabwe in the period as result of lower requirement from our counterparts.”
Meanwhile, gross margin declined by 27 percent as selling prices were offset by unfavourable changes in foreign currency leading to higher landed cost of goods.
The company also said that selling and administration costs were 5 percent below last year.
The drop in selling and administrations costs was attributed to reduction in variable costs linked to the sales.
The store occupancy compared to last year were up 2 percent, attributed to USD dollar rentals affected by the depreciation of the kwacha against the dollar.
Other expenses were up 12 percent attributed by the exchange loss as the kwacha continues to depreciate against the US Dollar.
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