Diversified investment group, Meikles Limited posted a 241 percent growth in profit after tax in inflation adjusted terms for the six months to September 30, after a strong performance from its retail business ahead of a potential major restructure this week.
The group is set to spin-off its agriculture segment, Tanganda to unlock more value and has previously announced it wants to focus more on growing its retail segment trading as TM Pick n Pay supermarkets.
In the company interim results, Group Chairman, John Moxon said revenue from continuing operations; in inflation adjusted terms grew by 28 percent to ZW$ 20.0 billion compared to the same period of the previous year primarily due to a strong performance by the supermarket segment.
Group operating profit for the period increased by 156 percent to ZW$ 1.0 billion
“Group profit after tax of ZW$ 1.6 billion (Previous period: ZW$ 469.2 million) was impacted positively by investment income and by the growth in operating profit,” said Moxon.
TM Pick n Pay unit posted revenue for the period of ZW$ 20.0 billion driven by a 27 percent growth in units sold.
”Units volume accelerated after 30 September 2021, and it is expected to result in a stronger financial performance in future months,” said Moxon.
Tanganda, classified as a discontinued operation posted a loss of ZW$ 531.2 million (Previous period: Loss of ZW$ 183.2 million) as the segment as profitability is adversely affected by the disparities between increases in production costs and the movement in the exchange rate.
Exports however contributed 72 percent of Tanganda’s revenue.
In the hospitality segment in Victoria Falls, COVID-19 disruptions to international tourism and travel affected operations. Room occupancy for the period under review was 12.89 percent.
The Group achieved an increase in liquid financial resources despite the trading environment and continued COVID-19 trading restrictions.
The statement of financial position strengthened with the current ratio improving to 1.77 times from 1.60 times on 31 March 2021.
Cash and bank balances increased by 58% (Historical cost: 90%) to ZW$ 1.5 billion from ZW$ 0.95 billion (Historical cost: ZW$ 0.79 billion) at 31 March 2021.