Meikles FY revenue up 17pc

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BH24 Reporter

HARARE – Listed diversified group Meikles Limited’s revenues for the year to March 31, 2018 rose 17 percent to $535 million, driven by a positive performance of the supermarkets subsidiary.

The FY results again do not reflect the impact of funds owing to the company by the Government.

In terms of subsidiary contributions, TM Pick and Pay Supermarkets contributed 91 percent to the bottomline, followed by the Agriculture division at 5 percent; Hotels at 3 percent and Departmental Stores & Wholesaling a mere 0, 4 percent.

The performance of the TM Pick and Pay supermarkets also contributed to profitability during the period.

Earnings before interest, tax, depreciation and amortization (EBITDA) for the supermarkets subsidiary jumped 45 percent to $34, 5 million as the segment traded in 55 stores.

Tanganda, the agriculture business,  registered an EBITDA increase of 69 percent to $10, 3 million during the period under review on the back of a couple of factors, namely: the increased quantum of harvested tea and an increase in the selling prices of tea, avocados and macadamias.

Meikles and Victoria Falls Hotels registered an increase in EBITDA from $1, 8 million in the previous year to $4, 1 million on improved occupancies.

The Retail and Properties section reflected an EBITDA loss of $4, 2 million as the group’s Mega Market and M Stores were closed during the year under review.

Meikles also sold the Financial Services operation during the year.

The group’s profit after tax margin was 1, 4 percent.

Meikles says funding from the Government is forthcoming.

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