CLOTHING manufacturer and retailer EDGAR Limited said Tuesday retail sales rose 22 percent to US$24 million from US$19,5 million for the interim period ending June 30.
Chairman, Themba Sibanda said the turnover at the Edgars chain alone was up 16,9 percent to US$19,8 million, representing 83 percent of the total group revenues.
“Credit sales were 89 percent of chain and 74 percent of group sales from 89 percent and 76 percent respectively. Unit sales were up on last year by 2,8 percent,” Sibanda said.
He however, said the company had been affected by a sluggish economy with the key agriculture sector performing well below expectations because of a drought.
Again while liquidity conditions improved with financial institutions increasing lending to individuals employed in the formal sector slower GDP growth reduced disposable incomes.
Over the period the group relocated its Mutare Jet store, opened an additional site in Bulawayo, whilst the Express store in Harare was closed and the space merged into Edgars.
“In the period after the half year cut off, we opened a store in Chinhoyi bringing Jet up to 14 stores. Turnover of US$$4,1 million was achieved reflecting a growth of 68,2 percent, being 17 percent of total turnover compared to 14 percent last year. Unit sales grew by 48,7 percent,” Sibanda said.
He said the company’s manufacturing unit incurred a loss of US$14,000 for the six months which was better than last year by 31,2 percent. Units sold increased by 20 percent.
“Efforts are being made to obtain additional customers and enhance productivity by increasing the product mix,” Sibanda added.
“We expect to continue to grow turnover over last half of the year albeit at a slower pace. Profit after tax growth is expected to be higher than sales growth.”