Edgars defies headwinds with positive Q3 performance

  • The Group opened Jet stores in Hwange and Mutoko
  • Revenue up by 19%
  • Recorded Improved sales across all its units
  • loan book principal value increased by 41.8%

Harare – Listed clothing outlet, Edgars Limited Zimbabwe posted a warm 19% increase in revenue of ZWL1.29 billion for the third quarter ended October 2021 from ZWL1.08 billion recorded in the previous quarter of the same year.

The growth was driven by cumulative unit sales which grew by 15.5% to ZWL1.6 million during the quarter.

Growth came amid a volatile working environment which was associated with level four (4) lockdown which reduced foot traffic into stores during the quarter.

“Consumer confidence and spending was significantly depressed, resulting in year to date turnover falling below forecast by the end of September 2021,” the Group said in a statement accompanying the financials.

Cumulative unit sales increased by 15.5% during the review period to ZWL1.6 million with Carousel Manufacturing unit leading the race.

Carousel Manufacturing sales increased by 47.4% to 46,484 from 31,537 recorded in the second quarter.

“Management continue exploring export markets for opportunities offered by the COMESA registration received by the factory,” the Group added.

Jet division’s sales at 391,356 improved by 15.6% ahead of the prior quarter with credit sales constituting 48.6% of the total sales for the quarter while the Edgars unit sales increased by 14.7% to 243 211 ahead of the prior quarter.

Of the 14.7% increase, credit sales constituted 72.5% of total sales compared to 68.1% for the corresponding quarter.

Meanwhile, finance income was up 21.9% during the review period on the back of a growing debtors book which increased to ZWL814 million. The debtors book performance remained healthy, with 87.5% of the book being current compared to 86.3% in the previous quarter.

The Group’s loan book principal value increased by 41.8% to ZWL101million against the corresponding period with the Interest income up at 34.9% ahead of the prior period.

During the quarter, two Jet stores were opened in Mutoko and Hwange.

However, borrowings went up by 25% to ZWL906 million from ZWL725 million at the end of the second quarter, with the average cost of borrowing remaining largely unchanged.

The Group’s foreign liabilities amounted to US$190,000, however, the Group said it is able to service it from its existing resources.

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