Edgars to resume exports

Edgars to resume exports
Published: 05 June 2018 (1411 Views)
GIANT clothing manufacturer and retailer, Edgars Group, says it will soon resume garments and clothing exports into the region.

In an interview after the ZimTrade/Zimra stakeholder engagement seminar held in Bulawayo last week, Edgars Carousel managing director, Mr Menfree Tanyanyiwa, said:

"We are looking at resuming exports into the region and we are waiting for the go ahead from our parent company Edgars South Africa.

"We ceased exports at the height of the hyper inflation in 2008 and we are re-penetrating the export market to South Africa having increased our throughput at our factory."

Carousel is Edgars' factory division, which at the moment employs 400 people. Mr Tanyanyiwa, who earlier in his presentation during the engagement seminar had told participants that they would in the next two months resume exports into the region, said his company was going into the export market to grow the business and to raise foreign currency.

Towards the end of last year, the Reserve Bank of Zimbabwe increased the export incentive from five percent to 12 percent and above for top exporters as part of efforts to boost foreign exchange generation in the economy.

The move by the Central Bank is meant to bolster liquidity on the back of biting cash shortages and depleted nostro reserves, which have induced a strain on the viability of local manufacturers resulting in a weakening of the supply of major consumer goods on the market.

"We are expecting that in the next two months we will be resuming exports," Mr Tanyanyiwa told the participants.

Before suspending the exports, the Zimbabwe-Stock Exchange-listed firm exported into the region as well as European markets to countries such as Germany. In the 2017 annual report, Edgars Group chairman Mr Themba Sibanda said his organisation registered improvements in merchandise assortments, customer service, promotions, and revamps during the period under review.

He said the new political dispensation together with utilisation of excess Real Time Gross Settlements balances resulted in improved consumer confidence, which contributed to stronger second half sales.

"Sales of merchandise for the year at $62,9 million were 25 percent above 2016 ($50,3 million).

"Group margins were maintained at 43 percent while credit management and debt collection costs continued to be well controlled and resulted in savings of $3m on last year (55 percent)," said Mr Sibanda.

He indicated that other operating income and expenses were impacted by increases in software and computer costs, bonus payments and a reduction in commission and other income.

"The decrease in finance income is due to the reduced debtors book and arrears levels," Mr Sibanda said.

On the outlook, Mr Sibanda said limited allocation of foreign currency to the clothing sector was of grave concern to the board and management.

"Numerous measures are being pursued to mitigate this risk, which will dampen growth prospects.

"We are currently adequately stocked in most departments and the sales and profit performance in 2018 is ahead of last year. Much focus will be given to development of our staff in 2018," he said.

- chronicle

Tags: Edgars, Resume, Exports,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 729 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1418 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1072 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1108 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1094 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 897 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 731 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 700 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 581 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 956 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 604 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 638 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 629 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 510 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 594 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 593 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 576 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 562 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 409 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 374 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 574 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 921 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 625 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 595 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 576 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 656 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 546 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 484 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 520 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 525 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 504 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 568 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 503 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 453 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 578 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 894 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 536 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 457 Views