Published: 11 November 2025

OK Zimbabwe Limited has reported a US$25 million loss for the year ended March 31, 2025, more than doubling its US$12.4 million loss from the previous year, after revenues slumped by more than half amid supply chain breakdowns, high operating costs, and fierce competition from informal traders.

The group's revenue fell 52 percent to US$245 million, down from the previous year's performance, as operations were severely constrained by stock shortages and delays in supplier deliveries.

"Revenue decline is attributed to supply chain disruption and heightened competition from the informal sector, compounded by exchange rate controls that distorted pricing," said OK Zimbabwe chairman, Mr Herbert Nkala, in a statement accompanying the results.

"The recovery of the group has started, but it will take some time to return to normal operations. The board and management are confident that with proper focus and diligence, the ultimate goal of delivering consistent shareholder returns in the medium term is attainable."

During the reporting period, the retailer struggled with delays in settling supplier accounts, leading some suppliers to withhold deliveries or demand upfront payment, which further constrained stock availability.

The group said these challenges had "negatively impacted operational capacity," leading to lower output and reduced trading hours in several outlets.

To ease liquidity pressures, OK Zimbabwe plans to raise an additional US$10.5 million through the sale of immovable properties, with several offers currently under review. This follows an earlier US$20 million rights issue, which was aimed at recapitalising the business, rebuilding supply chains, and paying down debt.

Following a comprehensive review, the company recognised an impairment charge of US$10.3 million after determining that the recoverable values of certain cash-generating units had fallen below their carrying amounts.

Despite recording a net exchange gain of US$13.5 million - mainly from the remeasurement of monetary liabilities following currency devaluation - this was insufficient to offset the steep fall in revenues and impairments.

"As a result of the factors highlighted, the group recorded a significant loss for the year of US$25 million," said Mr Nkala.

The group said it is now focused on stabilising operations through tighter cost control, improved supplier relations, and exploring new revenue streams to strengthen resilience in a difficult operating environment.

Management also acknowledged a decline in retail skills due to staff migration and said the company is retraining existing employees to enhance customer service and performance standards.

"The recovery of the group has started, but it will take some time to return to normal operations," Mr Nkala reiterated.

OK Zimbabwe, the country's largest retail chain, continues to face headwinds from a shrinking formal retail sector, as informal traders - who operate with lower costs and minimal regulation - capture a growing share of consumer spending.

Analysts say the group's turnaround will depend on how quickly it restores reliable supply chains, rebuilds working capital, and repositions its value proposition amid changing consumer behaviour.

Despite the losses, OK Zimbabwe remains committed to a long-term recovery, banking on capital restructuring, operational reforms, and a stabilising macroeconomic environment to return to profitability.
- The Chronicle

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