Edgars Stores Limited has closed its 52 weeks to 4 January 2026 with a sharp uplift in profitability, driven by disciplined cost management, merchandise optimisation, and strategic investment in manufacturing capacity, according to the Group Chairman’s Report released today.
The company reported earnings attributable to ordinary shareholders jumped 139% to USD1.947 million, up from USD813,000 in the prior comparable period. Retail sales revenue climbed 12% to USD34.079 million, while total assets grew 20% to USD40.978 million. Market capitalisation nearly doubled, rising 87% to USD14.024 million as the share price tracked the improved performance, closing the period at 0.023 cents per share. Net cash generated from operating activities was USD1.801 million, down 31% year-on-year, while the current ratio eased to 1.32 from 1.67. Gross gearing rose to 0.69 from 0.57, with net gearing at 0.44.
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Book NowReturn on ordinary shareholders’ equity strengthened significantly to 12.88%, up from 3.74% a year earlier. Basic and diluted earnings per share both rose 139% to 0.34 cents.
The company invested a USD1.1 million capital outlay during the period to maintain and expand production capacity, with the investment directed primarily toward a new cutting room solution at Carousel, the company’s manufacturing unit.
The upgrade is expected to lift output volumes, cut fabric waste, and drive further cost efficiencies. “This investment reinforces the strategic importance of vertical integration within the Group,” Sibanda said, noting that retooling will continue to enhance support to the retail chains and improve margin resilience.
The Board announced changes in the company secretary’s function. Mrs. C. Mafunga resigned effective 31 December 2025, with the Board expressing “sincere appreciation for her contribution during her tenure.” Ms. R. Mutombwa was appointed Company Secretary from 1 January 2026.
Operational priorities include smart procurement, optimal inventory planning, and working capital discipline. Selective store expansion will proceed in high-potential locations, consistent with the Group’s measured capital allocation framework.
To mitigate energy cost pressures, the company will continue investing in backup solar power to enhance operational resilience.
While improved agricultural output offers “cautious optimism for economic recovery,” Edgars cautioned that liquidity constraints and cost pressures are expected to persist in the near term. Still, he expressed confidence in the Group’s strengthened balance sheet and disciplined strategy to consolidate recent gains.
The company resolved not to declare a dividend for the year ended 4 January 2026, citing ongoing strategic investments in ERP renewal, manufacturing capacity expansion, store expansion, and working capital to support growth.
Looking ahead, the company is committed to continue refining segmented retail propositions to align each brand with evolving customer needs and purchasing patterns. The focus remains on “disciplined cost management, merchandise optimisation and prudent credit deployment” to support sustainable revenue growth.
