Meikles Limited has reported a 2% decline in group revenue to ZWG$12.5 billion for the financial year ended February 28, 2025, as the company navigated a turbulent operating environment characterised by currency reforms, regulatory challenges, and suppressed consumer demand.
According to the Meikles Limited 2025 Annual Report, the Group’s core supermarket division, TM Pick n Pay, remained the cornerstone of operations, contributing 99.6% of total revenue.
Despite the decline in revenue, unit sales increased by 1%, showing modest resilience in consumer activity amid constrained liquidity and a dual pricing system that continues to undermine formal retail competitiveness.
“The year was characterised by macroeconomic volatility, currency reforms, and significant regulatory developments that tested the resilience and adaptability of our business,” said Meikles Chairman Fayaz King.
“I am pleased to report that despite these challenges, the Group maintained operational stability and made notable progress in key areas of our business.”
The group recorded a loss of ZWG$264 million from continuing operations, compared to a ZWG$405 million profit in 2024. Total assets, however, grew by a strong 27% to ZWG$3.24 billion, reflecting continued balance sheet strength and capital preservation.
TM Pick n Pay’s performance mirrored the wider formal retail sector, which remained under strain due to the government’s in-store exchange rate controls and limited ZWG liquidity. Informal players, using parallel market exchange rates, continued to outprice formal retailers on USD sales.
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Meikles reported that 23% of supermarket revenue was earned in foreign currency, up from 17% last year, indicating gradual progress in hard currency sales. During the period, the group closed three branches in Chegutu, Harare Street, and Southwold while opening a modern outlet in Hogerty Hill, reflecting a shift towards operational optimisation.
Gross profit margins remained stable at 22.69%, while net operating costs rose by 4%, mainly due to higher power costs and a doubled intermediated money transfer tax on USD transactions.
Looking ahead, Meikles expects improved trading conditions following the repeal of restrictive pricing regulations. Early indicators show an 8% rise in unit sales and an increase in USD transactions to 32% of supermarket revenues in the first quarter of the new financial year.
Chairman Fayaz King said the group’s focus will remain on liquidity optimisation, selective investment in high-performing branches, and improved supply chain efficiency.
“We are prioritising disciplined capital deployment, expansion into mining towns, and enhanced cash generation from operations,” he said.
Meikles also reaffirmed its commitment to sustainability, noting that 17 of its supermarkets are now powered by solar systems that generated 310 MWh in 2025.
The company has reduced its electricity and water consumption by 4% and 8%, respectively, while continuing to support 41 community-based initiatives focused on health, education, and sustainable development.
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