Reviewed Condensed Financial Results

for the half year ended 30 September 2023

Financial Highlights
Revenue
Inflation Adjusted Historic Cost

Revenue Increased by 60.38%

to ZWL727.9 Billion
Increased by 473.46%
to ZWL541.3 Billion ZWL727.9bn ZWL43.4bn
1
Increased by 121.66% Increased by 199.80%
to ZWL 64.2 Billion to ZWL 12.4 Billion Revenue for the half year grew by 60.38%
to ZWL 727.9 billion from ZWL 453.8 billion 62.74% to ZWL 43.4 billion (2022: ZWL 26.7
Basic Earnings Per Share Increased by 51.08% Decreased by 517.01%
in the comparative period. In historical cost
to 1 618.02 ZWL cents to -703.84 ZWL cents
terms, revenue grew by 473.46% to In historical cost terms, loss before tax was
ZWL 541.3 billion from ZWL 94.4 billion.

Chairman’s Statement
Operating environment Outlook
On behalf of the Board of Directors, I am honored to present the OK Zimbabwe Limited Group (“the We welcome the Monetary Policy Commitee recommendation to remove the 10% margin cap
on the instore exchange rate and the removal of IMT tax on card transactions for our
customers. These measures will go a long way to remove the price distortions brought about by
headwinds which were further compounded by the rapid exchange rate depreciation. The reporting the uneven exchange rate disparities and this should result in lower prices for the consumers.
However, we await the regulatory provisions that will give legal effect to the recommendations.
rate of ZWL 5,466.74. This rapid depreciation of the local currency caused some sharp price increases
Management has put in place a comprehensive business and volume recovery plan whose short and

of volumes to the informal sector which enjoyed more exchange rate flexibility. Consequently, the
The Group has implemented cost optimisation initiatives across the operations, streamlining
were below expectation resulting in a volume decline of 22.6% compared to the same period last
year. Suppliers resorted to shortened trading terms as they sort to hedge against exchange rate overheads.
movement induced losses which resulted in high incidences of stock outs.

Group Performance

enhance comprehension and analysis.

Herbet Nkala
Revenue for the half year grew by 60.38% to ZWL 727.9 billion from ZWL 453.8 billion in the Board Chairman
comparative period. In historical cost terms, revenue grew by 473.46% to ZWL 541.3 billion from 14 December 2023
ZWL 94.4 billion.

As a consequence of the exchange rate deterioration, the cost of doing business continued to
increase to unsustainable levels. In historical cost terms, operating costs increased by 886.83%
mainly driven by utilities and backup power expenses, transport and delivery, maintenance expenses
and labour costs. Reviewed Condensed Consolidated Statement

for the half year ended 30 September

Inflation Adjusted Historical*

denominated liabilities and leases amounting to ZWL 32.4 billion which negatively impacted on
Reviewed Reviewed Unreviewed Unreviewed
Sept 2023 Sept 2022 Sept 2023 Sept 2022
denominated liabilities and renegotiating foreign currency based leases to reduce the impact of Notes ZWL 000 ZWL 000 ZWL 000 ZWL 000
exchange losses going forward.
Revenue 4 727,873,698 453,844,974 541,288,732 94,389,982
Changes in trade inventories 12.1 (36,581,298) (21,256,885) (107,269,612) (18,100,810)
Merchandise and consumables used (568,771,996) (392,072,515) (266,122,726) (55,606,282)
Other income 5.1 10,950,551 2,797,736 9,328,569 436,677
(82,416,494) (31,249,483) (53,786,008) (6,658,587)
The Group utilised credit facilities to fund its strategic growth initiatives in accordance with its Depreciation and amortisation (14,751,399) (11,900,375) (5,572,162) (735,408)
Share-based payments expense (729,425) (148,274) (683,899) (31,100)
63.86%. Exchange losses 5.2 (32,458,608) (385,656) (31,713,458) (60,194)
Other expenses 5 (104,294,319) (38,441,816) (84,269,241) (8,217,836)
Capital expenditure for the half year grew to ZWL 16.8 billion (2022: ZWL 7.4 billion). Most of the Finance income 5,314 8,502 3,472 1,445
capital expenditure was channelled towards the new Bon Marché Marondera store and a number of Finance costs (12,789,720) (7,810,365) (9,550,354) (1,869,640)
new Alowell Pharmacy outlets that are now fully operational instore at selected branches. Net monetary gain 157,385,880 73,296,033 — —
43,422,184 26,681,876 (8,346,687) 3,548,247
Income tax expense 8 (22,195,665) (12,747,258) (886,869) (1,352,151)
Directors
21,226,519 13,934,618 (9,233,556) 2,196,096
During the period under review, Mr Simon Masanga retired from the Board of Directors. I take this
opportunity on behalf of the Board of Directors to thank Mr Masanga for his invaluable contribution Other comprehensive income (OCI)
to the company and wish him well in his future endeavours.

Sustainability Fair value gain on property 10 67,997,801 8,029,763 129,774,839 14,045,646

Sustainability remains at the core of the Group’s Corporate Strategy with emphasis on Environmental,
Social and Governance (ESG) priorities, including addressing climate change, managing natural instruments at FVTOCI 7,605 (37,104) 40,758 —
Income tax relating to items that will not
(12,429,381) (1,980,538) (24,070,890) (2,877,987)
Other comprehensive income for
footprint. Although climate change and other environmental topics remain a priority, this is not the period net of tax 55,576,025 6,012,121 105,744,707 11,167,659
to the exclusion of societal factors. Providing a safe and supportive working environment, access Total comprehensive income for the period 76,802,544 19,946,739 96,511,151 13,363,755
to learning and development opportunities, and encouraging diversity and inclusion at all levels
received attention and focus during the reporting period.
Owners of the company 21,235,444 13,934,618 (9,156,324) 2,196,096
Dividend Non-controlling interests (8,925) — (77,232) —
No dividend has been declared for the half-year ended 30 September 2023. 21,226,519 13,934,618 (9,233,556) 2,196,096

1
Operating Income
activities.

R. J. Moyo, K. Mtemererwa, L. Webster-Rozon, W.S. Nyabereka

Address: OK House, 7 Ramon Road, Graniteside, P O Box 3081, Harare, Zimbabwe. Telephone: 263 (242) 757311/9, (242) 7502089/9, (242) 755617, (242) 755632, and (242) 755637
Fax: 263 (242) 757028, (242) 757039. Telex: 26463ZW, email: [email protected]
Reviewed Condensed Consolidated Statement Reviewed Condensed Consolidated
(continued) Statement of Financial Position (continued)
for the half year ended 30 September As at:

Inflation Adjusted Historical* Inflation Adjusted Historical*

Reviewed Reviewed Unreviewed Unreviewed Reviewed Audited Unreviewed Unaudited
Sept 2023 Sept 2022 Sept 2023 Sept 2022 Sept 2023 Mar 2023 Sept 2023 Mar 2023
ZWL 000 ZWL 000 ZWL 000 ZWL 000 Notes ZWL 000 ZWL 000 ZWL 000 ZWL 000

Total comprehensive income for the period: Current Liabilities

Owners of the company 76,811,469 19,946,739 96,588,383 13,363,755 Trade and other payables 11 184,942,867 135,258,648 184,942,867 42,191,872
Non-controlling interests (8,925) — (77,232) — Provisions 7,406,850 4,032,158 7,406,850 1,257,770
76,802,544 19,946,739 96,511,151 13,363,755 Short term lease liability 16 10,972,568 7,285,203 10,972,568 2,272,508
Borrowings 13.1 10,453,650 20,159,650 10,453,650 6,288,495
Weighted average number of Current tax liabilities 7,154,855 666,861 7,154,855 208,017
ordinary shares in issue 1,311,886,292 1,301,135,699 1,311,886,292 1,301,135,699 Total current liabilities 220,930,790 167,402,520 220,930,790 52,218,662
Total liabilities 333,255,927 237,252,747 302,666,265 67,709,553
Share performance: ZWL cents Total equity and liabilities 600,656,768 427,505,092 429,306,595 97,490,698
• basic earnings/(loss) per share 1,618.02 1,071.00 (703.84) 168.78
• headline earnings/(loss) per share 1,618.08 1,079.00 (703.85) 167.47 HISTORICAL REPORTING*
• diluted earnings/(loss) per share 1,552.07 1,024.00 (703.84) 161.35
• diluted headline earnings/(loss) per share 1,552.13 1,034.83 (703.85) 160.59 International Financial Reporting Standards in that it has not taken into account the requirements of International
Accounting Standard 29 Financial Reporting for Hyperinflationary Economies. As a result, the auditors have not issued a

HISTORICAL REPORTING*

International Financial Reporting Standards in that it has not taken into account the requirements of International
Accounting Standard 29 Financial Reporting for Hyperinflationary Economies. As a result, the auditors have not issued a Reviewed Condensed Consolidated Statement of Cash Flows
for the half year ended 30 September

Inflation Adjusted Historical*

Reviewed Condensed Consolidated Statement of Financial Position Reviewed Reviewed Unreviewed Unreviewed
Sept 2023 Sept 2022 Sept 2023 Sept 2022
As at: Notes ZWL 000 ZWL 000 ZWL 000 ZWL 000

Inflation Adjusted Historical* Cash retained from operating activities:-

Reviewed Audited Unreviewed Unaudited Cash generated from trading# 9 60,371,967 26,881,631 39,169,554 6,226,118
Sept 2023 Mar 2023 Sept 2023 Mar 2023 Working capital changes 9.2 15,564,925 (7,899,560) 20,724,131 (2,887,734)
Notes ZWL 000 ZWL 000 ZWL 000 ZWL 000 Cash generated from operations 75,936,892 18,982,071 59,893,685 3,338,384
Finance income 5,314 8,502 3,472 1,445
Assets Finance cost (12,789,720) (7,810,366) (9,550,354) (1,869,640)
Non-Current Assets Tax paid (4,130,889) (5,490,587) (1,009,754) (823,809)
Property and equipment 10 271,696,387 190,782,527 177,801,418 36,847,903 Net cash generated from operating activities 59,021,597 5,689,620 49,337,049 646,380
Financial assets held at FVTOCI 55,788 48,183 55,788 15,030
Financial assets held at amortised cost 3 10 3 3 Cash flows from investment activities
Goodwill 10,356,035 10,356,035 3,126,335 3,126,335 Investments to maintain operations:
Right Of Use Asset 15 124,909,545 74,123,384 60,693,239 12,522,871 Replacement of property and equipment (2,717,201) (2,865,503) (1,952,107) (683,552)
Intangible asset 865,596 913,274 183,379 193,480 Proceeds from disposal of
Total non-current assets 407,883,354 276,223,413 241,860,162 52,705,622 property and equipment 820 77,435 160 19,984
(2,716,381) (2,788,068) (1,951,947) (663,568)
Current Assets
Inventories 12 147,601,767 110,343,591 142,966,261 34,249,863 Investment to expand operations:
Trade and other receivables 450,540 4,529,611 450,540 1,412,943 Additions to property and equipment (14,085,154) (4,602,264) (10,119,136) (1,097,848)
Prepayments 14 13,194,109 26,126,891 12,502,634 5,915,086 Increase in intangible assets — (38,828) — (5,779)
Current tax asset — 138,468 — 43,193 (14,085,154) (4,641,092) (10,119,136) (1,103,627)
Short-term loans receivable 27,479 132,207 27,479 41,240 Net cash used in investing activities (16,801,535) (7,429,160) (12,071,083) (1,767,195)
Cash and cash equivalents 31,499,519 10,010,911 31,499,519 3,122,751
Total current assets 192,773,414 151,281,679 187,446,433 44,785,076
Total assets 600,656,768 427,505,092 429,306,595 97,490,698 Dividend paid — (4,980,307) — (969,719)
Proceeds from share options exercised — 230,348 — 50,387
Equity and Liabilities Increase/(Decrease) in short-term
Capital and Reserves loans receivables 104,728 40,875 13,761 (34,811)
Share capital 73,140 73,140 131 131 Repayment of lease liability 9.1 (4,658,513) (1,312,130) (3,899,513) (304,872)
Share premuim 24,207,163 24,025,999 372,575 197,474 Proceeds from borrowings 13.3 188,632 30,116,642 117,462 8,046,517
Share based payment reserve 1,870,496 1,696,669 333,274 160,341 Repayment of borrowings 13.3 (18,468,383) (22,075,620) (7,968,140) (4,109,059)
Mark-to-market reserve 26,687 19,196 54,952 14,805 Net cash (utilised in) / generated
Revaluation reserve 10.1 112,042,119 56,473,699 128,877,943 23,173,383 (22,833,536) 2,019,808 (11,736,430) 2,678,443
Non-distributable reserve 5,903,469 5,903,469 9,820 9,820
Retained earnings/(loss) 123,291,045 102,064,526 (2,929,235) 6,227,089 Net increase in cash and cash equivalents 19,386,526 280,268 25,529,536 1,557,628
267,414,119 190,256,698 126,719,460 29,783,043 Cash and cash equivalents at
the beginning of the period 10,010,911 6,795,064 3,122,751 723,479
Non-controlling interests (13,278) (4,353) (79,130) (1,898) Exchange gains on foreign cash balances# 2,102,082 3,927,060 2,847,232 846,635
Shareholders’ equity 267,400,841 190,252,345 126,640,330 29,781,145 Cash and cash equivalents
at the end of the period 31,499,519 11,002,392 31,499,519 3,127,742
Non-Current Liabilities
Deferred tax liability 17 49,130,007 25,262,312 18,540,345 1,582,371 HISTORICAL REPORTING*
Long term loan 13.2 9,186,528 7,735,772 9,186,528 2,413,056
Long term lease liability 16 54,008,602 36,852,143 54,008,602 11,495,464 International Financial Reporting Standards in that it has not taken into account the requirements of International
112,325,137 69,850,227 81,735,475 15,490,891 Accounting Standard 29 Financial Reporting for Hyperinflationary Economies. As a result, the auditors have not issued a

# Comparative restated to present impact of exchange gains or losses on foreign cash balances that were presented
under cash generated from trading in prior year and have correctly been presented in 2023.
Reviewed Condensed Consolidated Statement of Changes in Shareholder’s Equity
for the half year ended 30 September

Share based Market-to Non- Non-

Share Share payments Market Revaluation distributable Retained Controlling
capital premium reserve reserve reserve reserve Earnings Total interests Total Equity
ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000

Inflation Adjusted

Balance at 1 April 2021 73,203 24,232,003 1,203,434 30,139 32,329,267 5,909,210 95,124,503 158,901,759 — 158,901,759
— — — — — — 13,934,618 13,934,618 — 13,934,618
Other comprehensive income, net of tax — — — (36,549 ) 6,048,668 — — 6,012,119 — 6,012,119
Total 73,203 24,232,003 1,203,434 (6,410 ) 38,377,935 5,909,210 109,059,121 178,848,496 — 178,848,496

Transactions with owners:

Contributions and distributions
Share options exercised 11 230,338 148,274 — — — — 378,623 — 378,623
Dividends — — — — — — (4,980,307) (4,980,307 ) — (4,980,307 )
Total transactions with owners 11 230,338 148,274 — — — (4,980,307) (4,601,684 ) — (4,601,684 )

Balance at 30 September 2022 73,214 24,462,341 1,351,708 (6,410 ) 38,377,935 5,909,210 104,078,814 174,246,812 — 174,246,812

Balance at 1 April 2023 73,140 24,025,999 1,696,669 19,196 56,473,699 5,903,469 102,064,526 190,256,698 (4,353 ) 190,252,345
— — — — — — 21,226,519 21,226,519 (8,925 ) 21,217,594
Other comprehensive income, net of tax — — — 7,491 55,568,420 — — 55,575,911 — 55,575,911
Total 73,140 24,025,999 1,696,669 26,687 112,042,119 5,903,469 123,291,045 267,059,128 (13,278 ) 267,045,850

Transactions with owners:

Contributions and distributions
Share options exercised — 181,164 173,827 — — — — 354,991 — 354,991
Dividends — — — — — — — — — —
Total transactions with owners — 181,164 173,827 — — — — 354,991 — 354,991
Balance at 30 September 2023 73,140 24,207,163 1,870,496 26,687 112,042,119 5,903,469 123,291,045 267,414,119 (13,278 ) 267,400,841

Share based Market-to Non- Non-

Share Share payments Market Revaluation distributable Retained Controlling
capital premium reserve reserve reserve reserve Earnings Total interests Total Equity
ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000

Historical*

Balance at 1 April 2022 129 269,514 24,842 6,222 5,432,837 9,820 3,563,416 9,306,780 — 9,306,780
— — — — — — 2,196,096 2,196,096 — 2,196,096
Other comprehensive income, net of tax — — — — 11,167,659 — — 11,167,659 — 11,167,659
Total 129 269,514 24,842 6,222 16,600,496 9,820 5,759,512 22,670,535 — 22,670,535

Transactions with owners:

Contributions and distributions
Share options exercised 2 50,385 31,099 — — — — 81,486 — 81,486
Dividends — — — — — — (969,719) (969,719 ) — (969,719 )
Total transactions with owners 2 50,385 31,099 — — — (969,719) (888,233 ) — (888,233 )

Balance at 30 September 2022 131 319,899 55,941 6,222 16,600,496 9,820 4,789,793 21,782,302 — 21,782,302

Balance at 1 April 2023 131 197,474 160,341 14,805 23,173,383 9,820 6,227,089 29,783,043 (1,898 ) 29,781,145
— — — — — — (9,156,324) (9,156,324 ) (77,232 ) (9,233,556 )
Other comprehensive income, net of tax — — — 40,147 105,704,560 — — 105,744,707 — 105,744,707
Total 131 197,474 160,341 54,952 128,877,943 9,820 (2,929,235) 126,371,426 (79,130 ) 126,292,296

Transactions with owners:

Contributions and distributions
Share options exercised — 175,101 172,933 — — — — 348,034 — 348,034
Dividends — — — — — — — — — —
Total contributions and distributions — 175,101 172,933 — — — — 348,034 — 348,034
Balance at 30 September 2023 131 372,575 333,274 54,952 128,877,943 9,820 (2,929,235) 126,719,460 (79,130 ) 126,640,330

HISTORICAL REPORTING*

# Presentation of the Statement of Changes in Equity has changed from the comparative half year period to show reconciliations between opening balances and closing balances for each component of equity. The change in presentation has
no impact on the overall reported figures.

Notes to the Reviewed Condensed Consolidated Financial Statements

for the half year ended 30 September 2. Basis of Preparation (continued)

1. General Information 2.1 Hyperinflation (continued)

The Group is a leading supermarket retailer whose business is in retail and hypermarket formats; supplying food
and liquor, housewares and household goods, building material and pharmaceutical goods. At the reporting date, Conversion
Indices Movement Factor

The Group’s parent company OK Zimbabwe Limited is a registered limited liability entity incorporated in Zimbabwe CPI as at 30 September 2023 44,720.69 30,770.79 1.00
under the Companies and Other Business Entities Act (“COBE”) Chapter 24:31, listed on the Zimbabwe Stock CPI as at 31 March 2023 13,949.94 1,236.80 3.21
CPI as at 30 September 2022 12,713.12 7,947.00 3.52
CPI as at 31 March 2022 4,766.10 2,006.30 9.38

2. Basis of Preparation In-store exchange rate USD: ZWL-

30 September 2023 6,013.00
with International Accounting Standard (IAS) 34, (Interim Financial Reporting) and in the manner required by the 31 March 2023 1,022.00
Securities and Exchange (Zimbabwe Stock Exchange Listing Requirements) Rules, 2019. 30 September 2022 684.00

2.1 Hyperinflation Estimated Consumer Price Indices (CPI)

The historical amounts were restated at the end of the reporting period to reflect the general change in purchasing
power of the reporting currency (ZWL). Professional judgment was used and appropriate adjustments were made statistic through Statutory Instrument (SI) 27 of 2023. Following the announcement, ZIMSTAT has not been
publishing ZWL consumer price indices from and including February 2023.

par 17 permits the use of an estimate-based price index in circumstances where the rate is not available. In the

the unavailable CPIs as recommended by The Institute of Chartered Accountants Zimbabwe (ICAZ) given its very
strong correlation with inflation.
Notes to the Reviewed Condensed Consolidated Financial Statements (continued) Notes to the Reviewed Condensed Consolidated Financial Statements (continued)
for the half year ended 30 September for the half year ended 30 September

2. Basis of Preparation (continued) 5.

2.1 Hyperinflation (continued)

Inflation Adjusted Historical
CPI Sensitivity analysis Reviewed Reviewed Unreviewed Unreviewed
In deciding on which ZWL inflation indices to use in the preparation of Hyperinflation accounts, the Group took into 30 Sept 2023 30 Sept 2022 30 Sept 2023 30 Sept 2022
ZWL 000 ZWL 000 ZWL 000 ZWL 000
Reporting in Hyperinflationary Economies (IAS 29) International Accounting Standard. The group took into account
both the movement in TCPL, trend analysis and the changes in exchange rates in establishing the indices. The Other expenses
following analysis aims to show how sensitive the indices used to prepare hyperinflation accounts are to indices Utilities and backup power expenses 29,952,691 5,931,015 24,201,611 1,267,893
created using alternative methods. Marketing and promotional expenses 12,224,116 7,670,203 9,877,019 1,639,685
Maintenance expenses 9,875,864 3,382,835 7,979,644 723,160
Trend analysis Property operating costs 9,862,886 5,440,229 7,969,158 1,162,976
This approach considered the movement of CPI in prior months to determine a trend. Cleaning expenses 7,538,751 3,144,686 6,091,270 672,250
Security expenses 6,886,467 3,006,633 5,564,228 642,738
Interbank exchange rate movement Transport and motor vehicle 6,483,731 2,064,733 5,238,819 441,385
This approach considered the movement in interbank exchange rate as the basis. 4,342,133 1,368,173 2,833,729 291,528
Consultancy fees 3,708,833 652,635 2,996,717 139,516
Internal exchange rate movement Distribution expenses 3,016,931 1,294,408 2,437,664 276,710
This approach considered the movement in In-store exchange rate as the basis. Licences Expenses 2,663,977 1,125,828 2,152,479 240,672
Stock-taking expenses 1,727,736 528,293 1,396,001 112,935
Total Consumption Poverty Line (TCPL) Current year audit fees 1,393,540 275,783 1,125,973 58,955
This method used the movement in TCPL published by ZIMSTATS as the basis to estimate CPI. Management Bank Charges 1,212,829 614,132 979,959 131,285
considered this approach to be the most appropriate in determining the CPI for the period. Insurance expenses 1,061,615 799,169 857,779 170,841

The table below highlights the sensitivity analysis that was performed to determine the possible change in the CPI Property and equipment 822 106,769 (160) (17,026)
if the other three approaches were adopted. Other 2,341,397 1,036,292 2,567,351 262,333
104,294,319 38,441,816 84,269,241 8,217,836

Poverty Impact Interbank Impact Internal Impact 5.1 Other Income

Datum on the exchange on the exchange on the Lease and sub-lease income 918,988 666,085 710,920 103,964
Line Trend conversion rate conversion rate conversion Commission income 10,031,563 2,131,651 8,617,649 332,713
movement* Analysis factor** movement factor*** movement factor**** 10,950,551 2,797,736 9,328,569 436,677

CPI as at 30
September 2023 44,720.70 15,902.70 -64.40% 72,393.30 61.90% 72,932.10 63.10% into Lease and sub-lease income and Commission income.
Average CPI for the
6 months to 30 5.2 Exchange losses
September 2023 34,239.00 15,251.80 -55.50% 58,272.70 70.20% 59,020.50 72.40% The current period exchange losses were driven by United States Dollar denominated loans (exchange loss:
ZWL 18.8 billion), leases (exchange loss: ZWL 2.3 billion), trade payables (exchange loss: ZWL 15.2 billion) and
* To estimate the Index, the Group decided to use the TCPL movement. are net of exchange gains (ZWL 3.8 billion) .
** Estimated Impact of a change in the conversion factor had the Index been based on trend analysis instead of
the TCPL Inflation Adjusted Historical
*** Estimated Impact of a change in the conversion factor had the Index been based on the interbank exchange Reviewed Reviewed Unreviewed Reviewed
rate instead of the TCPL 30 Sept 2023 Sept 2022 30 Sept 2023 Mar 2022
**** Estimated Impact of a change in the conversion factor had the Index been based on the internal exchange ZWL 000 ZWL 000 ZWL 000 ZWL 000
rate instead of the TCPL
6. Capital expenditure 16,802,355 7,467,767 12,071,243 1,781,400
2.2 Currency of reporting

Inflation Adjusted Historical

Changes in Foreign Exchange Rates) at the in-store exchange rate prevailing at the time of transacting. In-store Reviewed Reviewed Unreviewed Unreviewed
rate is determined using the RBZ Auction rate as a base discounted by the authorised foreign currency discount 30 Sept 2023 30 Sept2022 30 Sept 2023 30 Sept 2022
rate applicable for in-store sale of products in the domestic market. All values are rounded to the nearest thousand ZWL 000 ZWL 000 ZWL 000 ZWL 000
except where otherwise stated.
7. Capital commitments
2.3 Historical reporting* Authorised but not contracted for 155,700,429 87,114,506 155,700,429 24,764,761

International Financial Reporting Standards in that it has not taken into account the requirements of International 8. Tax expense
Accounting Standard 29 (Financial Reporting in Hyperinflationary Economies). As a result, the auditors have not Current income tax 10,757,351 7,012,768 7,999,785 1,458,505
Standard 10,444,030 6,808,514 7,766,782 1,416,024
Aids levy 313,321 204,254 233,003 42,481
2.4 Deferred tax movement 11,438,314 5,734,490 (7,112,916) (106,354)
22,195,665 12,747,258 886,869 1,352,151

at half year period.

3. Statement of Accounting Policy higher inflation adjusted movements for the assets, as seen per the current net monetary gain of ZWL 157 billion.
The accounting policies are consistent with those used in the prior year.
In addition, Intermediated Monetary Transfer Tax (IMTT) increased from ZWL 7.4 billion to ZWL 9.7 billion, which
is not tax deductible.
Inflation Adjusted Historical
Inflation Adjusted Historical
Reviewed Reviewed Unreviewed Unreviewed
30 Sept 2023 30 Sept 2022 30 Sept 2023 30 Sept 2022 Reviewed Reviewed Unreviewed Unreviewed
ZWL 000 ZWL 000 ZWL 000 ZWL 000 30 Sept 2023 30 Sept 2022 30 Sept 2023 30 Sept 2022
ZWL 000 ZWL 000 ZWL 000 ZWL 000
4. Revenue
Retail 564,165,368 345,771,824 422,044,043 71,913,094 9. Cash generated from trading
Hypermarket 163,708,330 108,073,150 119,244,689 22,476,888 43,422,184 26,681,876 (8,346,687) 3,548,247
727,873,698 453,844,974 541,288,732 94,389,982 Adjusted for:
Finance costs 12,789,720 7,810,365 9,550,354 1,869,640
During the year, the Group earned revenue from sale of merchandise through its retail and hypermarket stores as Depreciation and amortisation 14,751,399 11,900,375 5,572,162 735,408
shown above. Exchange Losses 32,458,608 385,656 31,713,458 60,194
Share based payments expense 729,425 148,274 683,899 31,100
Interest income (5,314) (8,502) (3,472) (1,445)

plant and equipment 822 106,769 (160) (17,026)

Impact of inflation on cash flows (43,774,877) (20,143,182) — —
Cash generated from trading 60,371,967 26,881,631 39,169,554 6,226,118

9.1 Repayment of lease liability

Gross Payments (11,278,638) (3,217,119) (9,264,396) (717,351)
Interest on Lease liability 6,620,125 1,904,989 5,364,883 412,479
Net Lease payments (4,658,513) (1,312,130) (3,899,513) (304,872)
Notes to the Reviewed Condensed Consolidated Financial Statements (continued) Notes to the Reviewed Condensed Consolidated Financial Statements (continued)
for the half year ended 30 September for the half year ended 30 September

Inflation Adjusted Historical Inflation Adjusted Historical

Reviewed Reviewed Reviewed Reviewed Reviewed Audited Unreviewed Unaudited
2023 2022 2023 2022 30 Sept 2023 31 Mar 2023 30 Sept 2023 31 Mar 2023
ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000 ZWL 000

9. Cash generated from trading (continued) 11. Trade and other payables
Trade payables 167,422,757 129,953,571 167,422,757 40,537,034
9.2 Working capital changes Accruals and other payables 17,520,110 5,305,077 17,520,110 1,654,838
Increase in inventories (37,258,176) (20,679,878) (108,716,398) (18,226,316) 184,942,867 135,258,648 184,942,867 42,191,872
Decrease/(Increase) in trade
and other receivables 4,079,071 (4,459,532) 962,403 (1,582,098) Trade payables increase was mainly driven by increase in stock holding. In addition increase also included impact
Decrease/(Increase) in prepaid expenses of foreign currency fluctuation, (ZWL 15.2 billion).
and merchandising supplies 13,248,882 (12,668,080) (6,271,448) (4,207,447)
Increase in trade and other payables 35,495,148 29,907,930 134,749,574 21,128,127
15,564,925 (7,899,560) 20,724,131 (2,887,734) Inflation Adjusted Historical
Reviewed Audited Unreviewed Unaudited
30 Sept 2023 31 Mar 2023 30 Sept 2023 31 Mar 2023
Inflation Adjusted Historical
ZWL 000 ZWL 000 ZWL 000 ZWL 000
Reviewed Audited Unreviewed Unaudited
30 Sept 2023 31 Mar 2023 30 Sept 2023 31 Mar 2023 12. Inventories
ZWL 000 ZWL 000 ZWL 000 ZWL 000 Consumables 1,842,231 1,165,353 1,791,904 345,118
Merchandise 145,759,536 109,178,238 141,174,357 33,904,745
10. Property and equipment movement 147,601,767 110,343,591 142,966,261 34,249,863
in net book amount for the year:
At the beginning of the period 190,782,527 153,598,450 36,847,903 10,089,876
Capital expenditure 16,802,354 19,696,157 12,071,243 5,461,307 Reviewed Reviewed Unreviewed Unreviewed
Acquisition through business combinations — 2,169,251 — 670,346 30 Sept 2023 30 Sept 2022 30 Sept 2023 30 Sept 2022
Revaluation 67,997,801 28,002,751 129,774,839 21,546,318 ZWL 000 ZWL 000 ZWL 000 ZWL 000
Disposals (1) (206,870) — (5,332)
Depreciation (3,886,294) (12,477,212) (892,567) (914,612) 12.1 Changes in trade inventories
At the end of the period 271,696,387 190,782,527 177,801,418 36,847,903 Opening Merchandise Stock 109,178,238 75,397,801 33,904,745 7,884,252
Closing Merchandise Stock 145,759,536 96,654,686 141,174,357 25,985,062
Freehold property 36,581,298 21,256,885 107,269,612 18,100,810
Revalued amount 157,860,000 91,233,823 157,860,000 28,459,000
Accumulated depreciation — — — — Inventories are valued at lower of cost and net realisable value. Merchandise and consumables stocks are valued at
157,860,000 91,233,823 157,860,000 28,459,000

Leasehold improvements
Cost 19,569,739 17,939,855 2,524,774 929,696 Inflation Adjusted Historical
Accumulated depreciation (5,947,156) (5,634,254) (81,229) (49,035) Reviewed Reviewed Unreviewed Unaudited
13,622,583 12,305,601 2,443,545 880,661 30 Sept 2023 31 Mar 2023 30 Sept 2023 31 Mar 2023
ZWL 000 ZWL 000 ZWL 000 ZWL 000
Property and equipment
Cost 99,476,970 93,717,214 9,528,517 3,910,545 13. Borrowings
Accumulated depreciation (51,385,300) (49,190,309) (835,848) (518,110) 13.1 Short-term borrowings
48,091,670 44,526,905 8,692,669 3,392,435 Unsecured interest bearing loans 10,021,667 5,460,543 10,021,667 1,703,333
Bank overdraft 431,983 14,699,107 431,983 4,585,162
Vehicles 10,453,650 20,159,650 10,453,650 6,288,495
Cost 13,402,534 11,003,321 2,577,850 696,920
Accumulated depreciation (4,626,307) (4,724,580) (182,975) (101,253) 13.2 Long-term borrowings
8,776,227 6,278,741 2,394,875 595,667 Unsecured interest bearing loans
due in over a year 9,186,528 7,735,772 9,186,528 2,413,056
Work in progress 43,345,907 36,437,457 6,410,329 3,520,140

Total Property and equipment 271,696,387 190,782,527 177,801,418 36,847,903 Inflation Adjusted Historical
Reviewed Reviewed Unreviewed Unreviewed
10.1. Revaluation reserve
30 Sept 2023 30 Sept 2022 30 Sept 2023 30 Sept 2022
At the beginning of the period 56,473,699 32,297,867 23,173,383 5,432,837 ZWL 000 ZWL 000 ZWL 000 ZWL 000
Comprehensive income for the period 55,568,420 24,175,832 105,704,560 17,740,546
112,042,119 56,473,699 128,877,943 23,173,383 13.3 Total Borrowings
At the beginning of the period 27,895,422 16,097,903 8,701,551 1,713,964
Fair Value measurement of the Group’s freehold land buildings Proceeds 188,632 30,116,642 117,462 8,046,517)
The Group’s freehold land and buildings are stated at their revalued amounts, being the fair value at the date of Repayments (18,468,383) (22,075,620) (7,968,140) (4,109,059)
revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment. The fair Foreign exchange losses 18,789,308 1,530,191 18,789,305 435,000
value gain on property for the period was ZWL 68 billion. The fair value for all freehold land and buildings has been Impact of inflation (8,764,801) (3,629,015) — —
categorised as a Level 3 fair value based on the inputs to the valuation technique used. There were no transfers At the end of the period 19,640,178 22,040,101 19,640,178 6,086,422
into or out of Level 3 fair value hierarchy.
14. Prepayments
Prepayments 13,194,109 26,126,891 12,502,634 5,915,086
Market comparable approach 13,194,109 26,126,891 12,502,634 5,915,086
This method considered comparable market evidence i.e. the sales evidence either achieved or on the market,
of similar land and buildings situated in the comparable residential suburbs and undeveloped land with that of Subsequent to March 2023, the Group received imported merchandise and capital equipment that had been pre-
paid for, which caused the balance to decrease.
made but the transaction had not been completed.

Income approach Inflation Adjusted Historical

This method was applied for all land and buildings except for residential and undeveloped land. Anticipated future
Reviewed Audited Unreviewed Unaudited
30 Sept 2023 31 Mar 2023 30 Sept 2023 31 Mar 2023
ZWL 000 ZWL 000 ZWL 000 ZWL 000

15. Right of Use Asset

At the beginning of the period 74,123,384 45,370,048 12,522,870 1,989,891
Cost 94,197,406 49,500,922 14,413,842 2,379,019
per square metre ZWL 160,783 (March 2023 - ZWL 29,451.35) and price per square metre for land ZWL 597,937 Opening Accumulated amortisation
(March 2023 - ZWL 108,485.68) and for commercial properties were the percentage yield in market rentals 10.8% of Right Of Use Asset (20,074,022) (4,130,874) (1,890,972) (389,128)
(March 2023 - 10.8%). Additions 4,771,702 6,095,301 3,266,115 1,840,844
Remeasurement 56,831,885 38,601,182 49,573,749 10,193,979
The fair value measurements of the Group’s freehold land and buildings were performed by Dawn Properties Amortisation (10,817,426) (15,943,147) (4,669,495) (1,501,843)
Consultancy Limited, independent valuers not related to the Group, as at 30 September 2023. At the end of the period 124,909,545 74,123,384 60,693,239 12,522,871

Inter-relationship between key unobservable inputs and fair value measurement. The Group leases several properties. The average lease term is between 5 to 10 years and lease extension options
The estimated fair value would increase/(decrease) if: included in the property leases are considered for purposes of determining the right of use asset and lease
- the estimated yield in market rentals were higher/(lower). liabilities.
- the estimated rental rates per square metre were higher/(lower)
- the estimated price per square metre for land was higher/(lower) The Group has lease contracts properties whose contractual base rentals are based on a US dollar index to be paid
in the local currency ZWL at the prevailing interbank exchange rate, due to the hyperinflation environment. Due to

IFRS 16.26 prescribes measurement of lease liability to include variable lease payments that depend on an index
or rate. The contractual rentals are set in USD as it represents a stable index to limit the frequency and number of
rental reviews. The substance of the rental payments is such that exchange rate represents an index as per IFRS
16 therefore making the contractual rentals variable lease payments to be included in the measurement of the
lease liability.
Notes to the Reviewed Condensed Consolidated Financial Statements (continued) Notes to the Reviewed Condensed Consolidated Financial Statements (continued)
for the half year ended 30 September for the half year ended 30 September

Inflation Adjusted Historical 21. Subsequent Events

Reviewed Audited Unreviewed Unaudited
30 Sept 2023 31 Mar 2023 30 Sept 2023 31 Mar 2023 As per IAS 10.3, the budget pronouncement of a tax rate change is a non-adjusting event as it represents a
ZWL 000 ZWL 000 ZWL 000 ZWL 000 condition that arose after the reporting period 30 September 2023. The Group estimated the impact on Deferred
tax liability to be ZWL 2,182,193.10 (ZWL 572,150,292.72 Historical).
16. Lease liability
Long term lease liability 54,008,602 36,852,143 54,008,602 11,495,464 22. Going Concern
Short term lease liability 10,972,568 7,285,203 10,972,568 2,272,508 The Directors and Management have assessed the ability of the Group to continue as a going concern and believe
64,981,170 44,137,346 64,981,170 13,767,972

17. Deferred tax

Deferred tax liability movement
At the beginning of period 25,262,312 25,831,326 1,582,371 1,180,193
Charge/(credit) to statement by exchange rate losses on foreign currency liabilities. The period witnessed a very volatile economic trading
11,438,314 (4,395,762) (7,112,916) (3,403,725) environment which was characterised by episodes of extreme exchange rate volatility coupled with high inflation
Income tax relating to components of
other comprehensive income 12,429,381 3,826,748 24,070,890 3,805,903 control systems in place which includes checklists, policies, audits, security systems and spot checks. These are
At the end of period 49,130,007 25,262,312 18,540,345 1,582,371

The deferred tax liability / (asset)

current liabilities position:

The deferred tax liabilities account • Liquidating foreign currency liabilities – post the reporting period, the Group began the process of liquidating
foreign currency denominated liabilities and renegotiating foreign currency-based leases and product supply
contracts to reduce the impact of exchange losses going forward.
Property 30,187,670 12,547,098 27,424,211 3,123,804
Inventories 1,145,897 134,829 — — • Growing other source of income - the Group has entered into strategic partnerships with local and international
Equipment 10,576,543 7,472,903 212,981 (435,033) partners in Money Transfer, Agency Banking and licencing which is expected to improve value added instore
Quoted investments 837 723 837 225
Intangible assets 83,960 (274,401) (84,684) (108,190)
Right of use asset 30,877,640 18,323,301 15,003,369 3,095,654 • Management has put in place a comprehensive business and volume recovery plan whose short and medium-
Lease liability (15,501,497) (10,352,021) (15,501,497) (3,229,155)
Unrealised exchange loss (6,372,749) (1,553,742) (6,372,749) (484,666) bearing fruit.
Provisions (1,868,294) (1,036,378) (2,142,123) (380,268)
49,130,007 25,262,312 18,540,345 1,582,371
considerations have been made for the continued volatility in the operating market and that adequate mitigation
18. Segment information
be utilised should the need arises.
components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segments and to assess their performance. For the purpose of decision making, allocation of 23. Review Conclusion
resources and assessment of performance, senior management consider the Group to be a single operating unit. These condensed consolidated financial results for the half year ended 30 September 2023 have been reviewed by
Consequently no segment information is presented. Messrs KPMG Chartered Accountants (Zimbabwe) (‘KPMG’). KPMG expressed a qualified review conclusion due to
non-compliance with International Financial Reporting Standards IFRS 16 –Leases, in the current period in respect
19. Fair Value of Financial Instruments of accounting treatment of foreign currency denominated leases, and inability to conclude on the existence and
valuation of inventory as management had not fully resolved the issues posed by the system challenges. Manage-
ment could not provide sufficiently detailed information in respect of inventory at the time of issuing their report
to enable KPMG to complete their detailed analytical and inquiry procedures.
interest rate for the USD borrowings.
In addition, their most recent year-end audit opinion was modified for Leases and Inventory and, as management
20. Financial Risk Management has not applied the requirements of IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors (IAS
8), KPMG’s review conclusion is also modified due to the possible impact on the current period’s opening and
comparative balances.
risk, liquidity risk and control risk. The Group conducts business predominantly in ZWL however was impacted by
exchange losses detailed as per note 5.2. Measures to address this have been incorporated in the going concern The above matters impact the historical numbers which have a consequential impact on compliance with IAS 29,
note 22. Financial Reporting in Hyperinflationary Economies.

A copy of the detailed auditor’s review conclusion is available for inspection at the company’s registered office. The
engagement partner for this review is Vinay Ramabhai (PAAB Practicing Certificate Number 0569).