Meikles register 5% room occupancy increase

Meikles Limited recorded a 5% jump in room occupancy in the third quarter ended 30 November 2023.

The company presented its third quarter trading update.

“Room occupancy grew by five percentage points to 42% for the quarter from 37% achieved last year.

The average room rate, in USD terms, was 13% above last year and, combined with the growth in room occupancy, resulted in a 29% growth in revenue per available room”, read the trading update.

The increase in room occupancy is attributed to a growth trajectory that been witnessed in the country following massive work by the government in marketing tourist facilities and the country.

The company’s group revenue for the quarter of ZWL 613.1 billion was 128% above last year in inflation adjusted terms. Inflation adjusted company revenue for nine months grew by 111% to ZWL 1.7 trillion.

The company’s liquidity remained strong despite the tightening of trading terms in the economy.

In supermarkets, units sold and customer count increased by 5% and 2% respectively, for the quarter compared to last year. This increase managed to reverse the declining trend to 6% from 10% experienced in the preceding two quarters.

Foreign currency generation remains an Achilles heel for the company due to the in-store exchange rate policy. However, there are engagements with authorities for review of the exchange rate. Currently the company is generating 20% foreign currency.

The stores were relatively well stocked, hence the growth in units sold and customer count. Challenges were encountered in the range of stocks given the revenue split.

The last quarter of the financial year commenced on a strong note, with the units sold by the supermarkets in December surpassing those sold the previous year.

Going forward, the company’s focus is on strengthening its operations’ to adapt to the evolving trading conditions.

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