Carte Blanche with Perry

In keeping with the general earnings boost reported in the market, OK Zimbabwe announced a record growth in revenues of $582.5 million for the year ended 31 March 2018; its highest since dollarisation. OK`s revenues have been growing at an average annual rate of 25.5% for the past 9 years, as the leading retailer has been focused on expansion. However this attractive trend in sales growth faces growing threats from the cut-throat competition for market share in Zimbabwe`s retail space, where margins are already wafer-thin. By its own admission, OK faces stiff competition from SPAR, seeking to establish itself under a new management structure, Pick n Pay as well as wholesalers doubling up as retailers such as N Richards, Metro Peach and Gain Cash and Carry. Record Earnings The 23% growth in revenue from $472.4 million to $582.8 million in 2017 was attained against a backdrop of positive inflation experienced since February 2017, after a protracted period of price d...

Delta Corporation has long been seen as Zimbabwe`s bellwether stock, reflective of the health of the overall economy. Lately, Delta has drawn some negative, though unsurprising reportage, with one of the country`s top dailies recently reporting that the company was left with a week`s worth of raw materials for the manufacture of sparkling beverages and Super Chibuku, its popular sorghum beer offering. Stories such as these confirm what is visible by way of a mere cursory glance on the shelves of retailers countrywide. Delta Corporation`s product supply has been greatly affected by challenges in accessing foreign currency to pay key suppliers. The company reportedly needs up to $75 million annually for raw material imports. This is the context in which Delta`s FY2017 earnings report announced last Wednesday comes under. Stellar earnings Delta – Zimbabwe Stock Exchange`s biggest company by market capitalisation, of over $2.5 billion – announced strong earnings bearing ...