The operating environment remained challenging characterized by exchange rate volatility and hyperinflation. The multiplicity of exchange rates posed arbitrage challenges on both the supply and selling sides of the retail business. According to the Company, pricing dynamics have tilted consumers to favor the lesser-regulated informal sector. Consumer demand remained under pressure in the period as incomes were not moving in line with exchange rate movements. Additionally, the local currency liquidity crunch slowed economic activity in some channels. As a result, sales volumes for the company saw a decline of 7.7% in the period to 333.5mn units compared to 361.4mn units in the prior year. Revenue for the Company in historical terms went up 327% from ZWL$60.91bn in FY22 to ZWL$260.48bn in FY23. The Company continued to experience cost pressures emanating from forward pricing of stock by suppliers, increased utilities expenses, increased use of generators during power outages and exchange rate-induced increments on labour, cleaning, and security costs. General expenses grew at a faster 483% and resultantly, EBITDA thinned from 7.97% to 4.76%. Re-pricing of interest rates also resulted in a significant increase in interest burden for the Company. Whilst no new stores were opened within the period, the group invested in face lifts on existing stores to improve competitiveness within the market. Total borrowings ended the year at ZWL$8.70bn, with finance costs of ZWL$4.77bn. The Company closed the year with a PAT of ZWL$5.07bn, up 111.68% from ZWL$2.39bn registered last year. OK Zimbabwe declared a final dividend of USc0.02 per share, bringing the total dividend of the year to USc0.15. The final dividend will be payable on or about the 19th of October 2023 to shareholders in the Group’s register at the close of business on 13 October 2023.
