HARARE – Zimbawean conglomerate Meikles, which has a partnership with South African grocer Pick n Pay, says it has raised its profits 321 percent despite misgivings from investors over the delayed publication of its financials.
It is believed that subsidiary TM Supermarkets contributed significantly to the earnings growth in the year to end-March. In the half-year to September, the group's retail division raised revenues by 15 percent to $232 million (R3.4 billion) on the back of increased sales.
“Financial performance for the first three months of the financial year to March 31, 2019, reflects a growth in turnover of 21 percent, an improvement in earnings before interest, tax, depreciation and amortisation (Ebitda) of 86 percent and an increase in profit before taxation of 321 percent,” said company secretary Thabani Mpofu.
Meikles missed the deadline for the release of its financials for the year to March 2018, citing failure to secure funds it is owed by the government despite chairperson John Moxon telling shareholders last year that “an agreement with the government has been reached following high-level meetings”.
The Reserve Bank of Zimbabwe owes Meikles about $47m after accounting for interest but the government has since taken over this debt. Last year Meikles said it received treasury bills as part of the debt settlement. Mpofu said the debt had not yet been fully settled.
“Audited financial results for the year ended March 31, 2018, were delayed as it was believed finalisation of the settlement agreement with the government was to be concluded before the end of August.
“The company is unable to include the amount due from the government in the financial statements for the financial year ended March 31, 2018,” Meikles said.
The results will now be published in two weeks' time.