Meikles Limited posts revenue of ZWL28.4 billion revenue in pandemic hit FY21

Meikles Limited's Executive Chairperson, John Moxon

Key Highlights

  • Operating profit declined by 2% to ZWL878.3 million
  • PAT tumbled to ZWL373.3 million from ZWL 3.5 billion in the previous year
  • Revenue from the retail operations increased by 3%, but sales volume was down 21%
  • The Hospitality segment recorded a loss of of ZWL 122.7 million

HARARE – Despite challenging local as well as global economic conditions exacerbated by the effects of the COVID-19 pandemic, Meikles Limited managed to grow its revenue from continuing operations for the year ended 31 March 2021, by 3% to ZWL28.4 billion from ZWL27.6 billion in 2020.

With the pandemic having a heavy toll on hospitality segment operations, as well as resulting in the loss of trading hours, and subdued export operations, Meikles’ operating profit for the year from continuing operations declined by 2% to ZWL 878.3 million, down from ZWL 894.5 million in the prior year.

Group profit after tax for the year from continuing operations tumbled to ZWL 373.3 million, down from the previous year of ZWL 3.5 billion.

This was attributed to a monetary loss of ZWL 725.2 million, a decline of ZWL 5.2 billion compared to a monetary gain of ZWL 4.5 billion the previous year.

In a statement accompanying the financials, the Group’s Chairperson, John Moxon highlighted that a significant portion of the Group’s monetary assets are denominated in foreign currency with the result that the monetary adjustment is related to technicalities of inflation accounting, as opposed to a real loss of value.

The Group’s financial position has improved from the prior year.

“A stronger cash position than that of the previous year has been recorded with cash and bank balances, net of borrowings, up from ZWL 202 million to ZWL 724 million,” said Moxon.

“In addition, all foreign currency-denominated debts due to Pick n Pay have been paid.”

Revenue from the retail operations increased by 3% over the previous year in inflation-adjusted terms. Sales volumes declined by 21% primarily due to COVID-19 induced restrictions in trading times.

Operating Profit grew to ZWL 1.1 billion from ZWL 734.1 million while profit after tax was ZWL 632.5 million, a reduction from the previous year of ZWL 2.0 billion while profit after tax declined to ZWL632.5 million from the previous year of ZWL2.0 billion.

Meanwhile, under the agriculture operations, a strong performance was registered from the value-added packed tea products whose sales volume grew by 16% to 2,100 tonnes from 1,812 tonnes in prior year. Revenue of ZWL 2.4 billion was realised compared to ZWL 2.5 billion recorded in the previous year.

Tea production of 9,188 tonnes grew by 10% over prior year of 8,319 tonnes but was offset by a decline in average export selling price for bulk tea at US$1.38 per kilogram, down 4% from a prior year average of US$1.44 per kilogram.

Macadamia crop of 650 tonnes was 24% lower than 855 tonnes in prior year due to the adverse weather, but the average price firmed from US$4.99 per kilogram in the previous year to US$5.30 per kilogram.

The avocado crop grew by 32% from 1,907 tonnes in prior year to 2,520 tonnes, however, the average export price for avocados was 84 US cents per kilogram, 51% lower than prior year’s 173 US cents per kilogram as a result of the COVID-19 induced lockdown on the hospitality sector in Europe.

The hospitality segment’s profit after tax declined from a profit in the previous year of ZWL 629.2 million to a loss in the current year of ZWL 122.7 million as international tourism and travel halted due to the COVID-19 pandemic during the whole period under review and adversely affected revenue, profits and occupancy.

Moxon said that there is substantial development in the Properties segment while the Security Services also performed “satisfactorily” during the period under review.

“The Group continues to operate with a risk adjusted strategy as COVID-19 circumstances affect sectors of our business activities,” Moxon said.

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