OK Zimbabwe reports 53% revenue decline, US$29.6M loss for FY25

ZIBAMBWE – OK Zimbabwe Limited has announced that revenue for the year ended 31 March 2025 fell by 53% to US$240.1 million, compared with US$511.0 million in the previous financial year.

The company attributed the downturn to a 12% decline in sales volumes, citing weak consumer spending power and ongoing macroeconomic challenges in Zimbabwe.

The group’s net loss for the year widened to US$33.5 million, from US$12.4 million recorded in 2024.

Loss before tax amounted to US$30.3 million, weighed down by elevated operating costs, foreign exchange losses, and an impairment of US$10.3 million on non-financial assets.

Reflecting this financial strain, the headline loss per share moved deeper into negative territory at (2.24) US cents, compared to (0.84) US cents in the prior year.

Operational measures and store closures

During the year, the company shifted its functional currency to the US Dollar effective 1 April 2024 in an attempt to reduce volatility from exchange rate movements.

Management also initiated cost-cutting actions, including a rationalisation programme that saw the closure of several unprofitable branches.

However, tight working capital conditions left many outlets understocked, limiting product availability and affecting relations with suppliers.

The retailer explained that these constraints hurt sales and further weakened its position against informal traders, who continue to dominate Zimbabwe’s retail landscape.

Recovery strategy under new leadership

The results come shortly after OK Zimbabwe revealed a recovery programme, introduced following concerns the group was close to collapse last year as debts mounted and procurement inefficiencies deepened.

Chief executive officer Willard Zireva, who returned to the position in June after stepping down in 2017, described the current state of the business as “painful,” highlighting high liabilities, unsettled suppliers, and persistent stock shortages.

Speaking on a local radio interview, Zireva said his immediate focus was to restore financial stability, regain the trust of suppliers, and attract back customers.

To support this plan, the company raised US$20 million through a rights issue and intends to generate another US$10.5 million from asset disposals, with proceeds earmarked for debt clearance and restocking.

The turnaround framework is centred on restoring balance sheet strength, improving operational efficiency, and reinforcing governance structures.

Zireva noted that the plan also includes store refurbishments, retraining staff, and tightening expenditure controls, while governance changes are expected to increase accountability to shareholders.

Although acknowledging that recovery will not be immediate, Zireva said he considered the current crisis a chance to reset operations rather than a permanent setback.

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