MEIKLES Limited continues to post a very positive performance after recording a strong liquidity position on the back of a 102% revenue increase in the just-ended annual period.

Presenting performance for the period ended February 2024, Meikles Limited chairperson, John Moxon revealed the year ended on a positive note.

"At the end of the reporting period, the group had strong liquidity levels, including US$13,8 million in cash. The current assets ratio was 2,31 times, up from 1,74 times the previous year. The debt-to-equity ratio improved to 3% from 9% the previous year.

"Profit after tax increased to ZWL 469.5 billion from ZWL88.6 billion the previous year. The effective tax rate of 45,5% was much higher than the statutory tax rate of 24,7% for the year due mainly to the disallowed intermediated money transfer tax of ZWL114 billion," he said.

Group revenue grew to ZWL10.4 trillion (Previous year: ZWL5.2 trillion), representing a 102% increase with growth across all the segments. The gross profit margin was maintained at 22.8%, the same as last year, despite the exchange rate-induced volatility in the prices of goods.

The Supermarkets segment saw the TM Pick n Pay revenue grow by 102% to ZW$ 10,4 trillion.

The units sold for the year declined by 4.8% due to the combined effect of uncompetitive USD prices for formal retail and depressed consumer demand. The authorities controlled the in-store exchange rate used by formal retail players, while informal players used higher exchange rates, giving them a competitive edge.

Despite this impediment, units sold in the second half of the financial year recovered by 5.2 percentage points, reducing the full-year deficit to 4.8% from 10% at the half-year mark.

In the hospitality segment, revenue increased by 53% in US$ terms on the back of an 8% increase in room occupancy to 37%, combined with a 15% increase in the average room rate.

The Property segment revenue increased by 30% in US$ terms, reflecting the positive impact of the refurbishment of some of the properties. Profit after tax increased to ZWL40.7 billion from a loss of ZWL7.8 billion in the previous year.

"In the outlook, the group will focus on adapting to evolving economic conditions, including the new currency, the Zimbabwe Gold. The group will continue with the planned development projects, primarily in the supermarket and properties segments," he said.