eBusiness Weekly
Tapiwanashe Mangwiro
Business Writer
Powerspeed, which operates the Electrosales hardware chain, recorded a 2009 percent growth in revenue to $26,9 billion in the financial period ended September 30, 2022.
Chairman Dr Simba Makoni said in a statement accompanying the financial results “In the year under review, revenue rose from $8,7 billion, to 26,9 billion, while operating expenses rose from $1,5 billion to $5,9 billion.”
Powerspeed’s operating profit rose from $294 million to $1,4 billion and profit after tax jumped from $154 million to $582 million. Electrosales Hardware opened its twenty-first branch in Kadoma, its first purpose-built store. The branch has been profitable since its first month, Dr Makoni said and the throughput has been growing steadily ever since.
“Maintaining reliable supplies of product has proved to be extremely difficult. Suppliers in China have been severely affected by Covid-19 lockdowns and shortages of containers disrupted shipping throughout the year.
“Apart from the effects of Covid-19, suppliers in South Africa have also been buffeted by power cuts, as well as widespread industrial action, particularly at Portnet. The performance of local suppliers has been seriously hampered by the difficult conditions in the country, summarised above,” said Dr Makoni.
Powerspeed said it continued to invest in stock and systems and this enabled the hardware retailer to further improve product availability in all stores.
The product availability undoubtedly contributed to the increase in throughput over the reporting period.
Dr Makoni said the massive increase in interest rates in the last quarter had a significant negative effect on their business. This was compounded by a substantial decline in throughput, in Zimbabwe Dollar sales.
“Fortunately, we have been able to clear all our Zimbabwe Dollar borrowings, thereby shielding ourselves from further negative impact of the interest rate escalation,” the chairman said.
Whilst sales volumes have recovered, Powerspeed is seeing accelerated dollarisation, with most product suppliers, and other service providers, demanding payment in USD.
Powerspeed saw its shareholder equity close the full year 2022 ending September 30, 2022 at $8,2 billion.
Dr Makoni said, “We remained focused on growing throughput, and building real balance sheet value, both of which have been achieved during the year under review.”
As a result, shareholder equity grew from $2,1 billion to $8,2 billion, representing a 14,7 percent growth in real terms. The Board resolved to declare a dividend of $1.64 per share, for the 12 months ended September 30, 2022.
