Meikles Ld Trading Update

 
TIDMMIK 
 
MEIKLES LIMITED 
 
TRADING UPDATE FOR THE THIRD QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2020 
 
TRADING ENVIRONMENT 
 
COVID-19 lockdown restrictions were moderately eased during the quarter ended 
31 December 2020. Resultantly, trading hours for the Group's operations 
increased. In addition, the hospitality segment re-opened albeit for domestic 
tourism only. 
 
Group operations were adequately stocked during the festive season as our 
supply chains benefited from increased trading hours and improved access to 
foreign currency from the auction system. 
 
GROUP PERFORMANCE HIGHLIGHTS 
 
In inflation adjusted terms, Group revenue retreated by 7% and 8% for the 
quarter and nine months to date, respectively. Group revenue, in historical 
cost terms grew by 487% and 575% for the quarter and year to date, 
respectively. 
 
Sales volume at the supermarkets segment declined by 4% and 22% for the quarter 
and year to date respectively, relative to same period of the previous year. 
Sales volume for the year to date improved by nine percentage points from 31% 
decline as at the half year ended 30 September 2020. 
 
For the agriculture segment, bulk tea production benefited from early rains and 
grew by 41% and 6% for the quarter and year to date, respectively. Bulk tea 
production was 17% behind last year as at the half year ended 30 September 
2020. In volume terms, bulk tea export sales were behind last year by 8% and 
10% for the quarter and year to date, respectively. Average bulk tea export 
price for the quarter of US$1.39/kg was on par with the average price achieved 
same period last year but was 6% behind last year for the year to date. Packed 
tea and coffee sales volume grew by 24% and 18% for the quarter and year to 
date respectively. 
 
Group profit after tax for the quarter ended 31 December 2020, exceeded same 
period of last year in both inflation adjusted and historical cost terms. 
 
FINANCIAL POSITION 
 
The Group statement of financial position at 31 December 2020 reflects the 
Group has sufficient resources at its disposal to fund the planned capital 
expenditure and challenges arising from COVID-19 implications. 
 
OUTLOOK 
 
The start of the fourth quarter coincided with the second wave of COVID-19 
affecting the country, South Africa, and major international source markets for 
the tourism segment. In response, the Government scaled up the restrictions on 
movement of people to curtail the spread of the virus. Whilst the Group's main 
segments are classified as essential service and continue to operate, revenue 
is likely to be affected by reducing volumes to the end of the financial year 
and beyond. 
 
The good rains received this season bodes well for the Group's agriculture 
segment and growth in export crops is expected in the forthcoming financial 
year. Our dams are full and power, which is essential for irrigation and estate 
factories, will be available not only from traditional sources, but also from 
the solar projects. 
 
By Order of the Board 
 
T MPOFU 
 
COMPANY SECRETARY 
 
12 February 2021 
 
 
 
END 
 
 

(END) Dow Jones Newswires

February 15, 2021 05:41 ET (10:41 GMT)