Edgars Stores Limited, a clothing manufacturer and retailer, has invested US$1 million in retooling the Carousel Manufacturing plant in Bulawayo to enhance productivity and operational efficiency.
The Victoria Falls Stock Exchange-listed garment marker is working on installing new equipment at its Carousel factory to ramp up production from 35 000 units per month to 100 000 before the end of the year.
The manufacturing unit produces a wide-range of denim, ladies’, children’s, and gents’ casual wear that it supplies to retail divisions as well as to other retailers.
Edgars group chief executive officer Sevious Mushosho told businessdigest in an interview that the company was importing the machines from Germany.
“We ordered machines worth US$1 million and so far, we have received and installed about 60% of them,” he said.
“We are expecting the rest of the machines to come before the end of the year as they are being manufactured in Germany.”
The Edgars group, comprising Edgars Stores, Jet, Carousel and Club-Plus, had witnessed tremendous growth over the last few years, according to the company.
In its annual report for the year ended January 7, 2024, Edgars unveiled plans to remodel its business to capitalise on emerging opportunities.
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“In particular, management will focus on retooling Carousel to underpin increased production and improve operational efficiencies to better support retail chains,” the group’s chairperson Thembinkosi Sibanda said.
He also said the group would expand its footprint by opening new stores in strategic locations. It has already opened a new store at Ascot Shopping Centre in Bulawayo.
“In addition, cost containment efforts will be an area of key focus in order to underpin the long-term viability of the business,” Sibanda said.
The entity recorded a profit after tax of ZW$934,39 million (US$144,4 million) in the comparative 2023 period. This was due to a net monetary gain of ZW$142,81 billion (US$22,06 million).
The US dollar retail debtors’ book closed the period at US$12,6 million, representing a 100% growth on the prior year balance of US$6,3 million.
Meanwhile, its Zimbabwe dollar retail debtors’ book closed the period at ZW$1,4 billion (US$217 000), a 43,8% decline on the prior year.
Revenue was up 70,3% to ZW$294 billion (US$45,4 million).
This growth was attributed to margin improvements due to better procurement, ongoing cost management as well as other initiatives implemented by management to ensure fresher and high-quality stock availability in stores.
However, total expenses rose to ZW$152,01 billion (US$23,5 million) compared to ZW$66,64 billion (US$10,3 million) achieved in 2023.
The group remained liquid enough to seize market opportunities as it had ZW$1,78 to every Zimbabwe dollar of short-term debt by the end of the reporting period.
The cushion arose due to a 142% growth in trade and other receivables to ZW$101,47 billion (US$15,7 million) from the 2023 period. This indicated that Edgars was still accepting credit terms on its clothing products.
Total assets were recorded at ZW$229,01 billion (US$35,4 million) during the period under review, more than double the total assets in 2023.
