Meikles narrows loss to US$19 million

John Moxon

Meikles Africa chairperson John Moxon

MEIKLES Limited slashed its annual loss by 44 percent to US$19 million in the full year to March from US$34,8 million previously, driven by a strong performance in its retail units.

The group’s total revenue grew 10 percent to US$454 million.

Its retail subsidiaries, TM and Pick n Pay supermarkets recorded a10 percent growth in revenue to US$395 million as volumes increased on the back of a growth in customer count of seven percent.

TM and Pick n Pay’s performance sharply contrasts that of rival OK Zimbabwe, which registered a 48,9 percent decline in EBIDTA to US$9 million.

South Africa’s Pick n Pay owns 49 percent of TM Supermarkets, Zimbabwe’s second largest retail chain. Meikles owns 51 percent of TM.

Meikles Mega Mart registered a 28 percent increase in revenue to US$22 million.

The tea business unit, Tanganda, saw revenue grow by six percent to US$22,4 million driven by volumes of bulk tea sales.
The hospitality unit recorded a four percent decline in revenue to US$15,8 million.

Meikles operates two five-star hotels in Zimbabwe, the Meikles in Harare and its 50 percent-owned Victoria Falls Hotel. African Sun owns the other 50 percent.

The group also incurred impairment loss of US$2,8 million on its South Africa’s Mentor Africa Limited investment due to devaluation of the rand.

“The group will continue pursuing the recovery of sums due by government, cost reduction efforts, strong marketing and margin control. Where possible, short-term loans will be converted to medium-term loans. Market appetite for this conversion has improved,” said chairperson, John Moxon, in a statement accompanying the company’s unaudited financial results.

The group has previously stated that it is owed US$90 million by the central bank.

Meikles said the foreign partner for its mining venture, Centar Mining, a Guernsey-based investment group created by former JP Morgan banker, Ian Hannam had exited the country without giving any reasons.

The two formed Meikles Centar Mining Limited in 2013, with Centar planning to invest up to US$500 million into the business.

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