Zim Now Writer
OK Zimbabwe released its trading update for the third quarter ended December 31st, 2023, highlighting a complex operating environment marked by currency depreciation and regulatory compliance impacting consumer demand and competition.
“The depreciation of the local currency against foreign currencies continued in the quarter, leading to persistent price changes and affecting both consumer demand and supply dynamics,” the company stated.
Additionally, the company added that, adhering to currency regulations resulted in “high in-store prices and loss of competitiveness, especially against unregulated markets”. Despite these challenges, OK Zimbabwe has maintained open communication with authorities, advocating for “macroeconomic stability and support for the sustainable growth of formal retail business”.
The report acknowledges a decline in volumes, with a 32% drop compared to the same period last year and a 28% decrease for the nine months ending December 31st. This decline is attributed to “stringent supplier payment terms on Zimbabwean Dollar denominated purchases” and “credit limitations on foreign currency denominated purchases,” which impacted stock availability and pricing.
The company, however, assures stakeholders that “volume growth strategies are being implemented to stabilize business performance”.
On the financial front, OK Zimbabwe reported positive results. "Group revenue for the quarter of ZWL568 billion was 50% above last year in inflation-adjusted terms,” and “in historical cost terms, Group revenue grew by 535% to ZWL$490.5 billion”. Similar growth was observed for the nine-month period. To address rising costs, the company has implemented a “structured cost containment program to align overhead costs with business performance”.
Looking ahead, OK Zimbabwe said it remained optimistic. “The Group remains optimistic about its future prospects and recognizes the need to adapt to the changing operating environment,” the statement reads.
Their focus lies on “delivering value to customers by enhancing customer experience, executing fair pricing, improving market presence, and optimizing operational efficiencies for long-term sustainability”.
While challenges persist, OK Zimbabwe’s financial performance and future-oriented approach suggest they are adapting to the dynamic Zimbabwean market.
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