Published: 17 December 2025

Troubled retail giant OK Zimbabwe has reported a US$17.8 million loss for the half-year period ended September 30, 2025, as management intensifies efforts to raise capital and stabilise operations.

Presenting the group's financial performance, chairman Herbert Nkala said the loss marked a sharp reversal from the US$3.71 million profit recorded in the comparative period last year, attributing the deterioration to high operating costs, weak sales and persistent liquidity constraints.

"The Group recorded a net loss of US$17.81 million for the period. Although operating costs declined compared to the prior period, they remained high relative to reduced sales levels," Nkala said.

Employee benefits amounted to US$9.51 million, while other operating expenses totalled US$11.76 million. Utilities and backup power costs reached US$5.3 million, driven by higher tariffs and increased reliance on generators amid prolonged power outages at several outlets.

Finance costs also rose to US$2.10 million, up from US$1.65 million in the previous period, reflecting the higher cost of short-term borrowings used to fund working capital in a tight liquidity environment.

Capital expenditure during the period was limited to US$760,000, largely for the relocation of Bon Marché Chisipite and OK Makoni branches. All other planned capital projects were deferred as the group focused on conserving cash.

Nkala said the business required a minimum of US$30.5 million to address liquidity challenges affecting operations. The funding plan, approved by directors and shareholders, comprised US$20 million from a renounceable rights issue and US$10.5 million from the sale of selected freehold properties.

At an Extraordinary General Meeting held on July 17, 2025, shareholders approved the capital-raising strategy. The rights offer was fully subscribed, raising the targeted US$20 million, although the process was delayed and only completed in August instead of May.

"In the interim, additional liabilities were incurred, increasing the total creditors' balance," Nkala said.

Progress on property disposals has also been slower than anticipated, with the US$10.5 million from asset sales yet to be realised. Nkala said sale and purchase agreements for two properties were close to being signed, while offers for another three were under review.

"Efforts to dispose of the remaining properties and improve liquidity are ongoing," he said.

Looking ahead, management expressed confidence that the completion of property sales would unlock much-needed liquidity to replenish inventory and improve trading performance.

The group is also continuing with staff development programmes, with a renewed focus on customer service, operational discipline and consistent execution across all stores as it seeks to restore profitability.
- online

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