Meikles Africa's units remain profitable despite difficult trading conditions |
|
|
|
Published
:
Tue, 16 Oct 2007 08:52
|
LONDON (Thomson Financial) - Meikles Africa Ltd said its retail and hotel units remained profitable in the first half of the year despite the price control regulations and the cost of stock replacements.Though the difficult market conditions affected margins, the company said greater focus on cost management assisted in maintaining profitability although the cost of stock replacement will impact heavily on future cashflows.The South African hotel and retail group said its TM Supermarkets unit has been unable to source the required volumes of products to replace those which moved very quickly at the time of the new price regulations.Bakery operations were also severely affected by shortage of flour and power outages, it said.Action has been taken to address these issues and plans are advancing to open three new branches shortly, the company said.A rise in occupancy and price changes approved by the Zimbabwe Tourism Authority cushioned the impact of price controls and stock availability in the Meikles and Victoria Falls hotels, Meikles Africa said.The ability of manufacturers and suppliers to return to production levels that ensure greater local stock availability is key, as are pricing formulae that maintain viability, the company added.TFN.newsdesk@thomson.comkal/slmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
|
|
Print this Story
Unilever reorganises South Africa, Israel operations 