LISTED Meikles Limited group posted an inflation-adjusted profit after tax of $1,39 billion during the period ended March 2020 buoyed by the disposal of Meikles Hotel during the financial year. BY FIDELITY MHLANGA During the same period last year, the company posted a profit of $320,55 million. “The group delivered strong financial results in a tough operating environment with several impediments. Commentary on financial performance is based on inflation-adjusted figures. Group revenue for continuing operations grew by 6% from $8,3 billion in 2019 to $8,8 billion in the year under review,” group executive chairman John Moxon said in a statement accompanying the results. “Profit for the year grew from $320,6 million in prior year to $1,4 billion. Growth in profit for the year was boosted by $118,7 million profit on disposal of Meikles Hotel.” The company said the sale of its Harare hotel to Dubai-based Albwardy Investments completed at the end of February 2020 increased the group’s current assets. Total comprehensive income for the year was $1,1 billion (2019: $561,4 million), of which $790,8 million was attributable to the owners of the parent with the remaining balance of $340,7 million being for minority shareholders. Meikles supermarket unit trading as TM Pick n Pay realised revenue growth of 2% over the previous year in inflation-adjusted terms but sales volumes declined by 22% due to diminishing customer disposable income over the period. Profit after tax for the segment grew to $674,8 million from a loss of $21 million in the previous year. Profit growth was achieved through a focused approach to margin and operating expenditure control. “The profit after tax was after deducting exchange losses of $380,6 million. These exchange losses arose from foreign currency-denominated liabilities (legacy debt) accumulated prior to the introduction of local currency on February 22, 2019. Going forward, there will be no exchange losses as legacy debt exposure has now been eliminated,” Moxon said. The group’s legacy debt reduced to US$2,23 million as at March 31, 2020 from US$13,3 million at the beginning of the financial year. The payment of the legacy debt was funded from internally generated funds. After year-end, US$0,6 million was paid, leaving the outstanding balance at US$1,63 million. In addition, $1,63 million was remitted to the Reserve Bank of Zimbabwe. The segment invested $386,6 million in seven store upgrades and construction of an upmarket mall in Marondera during the year. The clearance of foreign currency-denominated liabilities has positioned the segment for accelerated store upgrades, branch network expansion, commencement of dividend payment to shareholders and a boost on the working capital front. In the agriculture segment, profit-after-tax was $157,2 million (2019: $332 million). “The hailstorm of January 2019, Cyclone Idai in March 2019 as well as a very dry and hot September to November 2019 period affected our tea production and ensuing season’s macadamia crop. The company’s annual tea production of