Meikles commits US$300 million to corporate
DIVERSIFIED business group, Meikles Limited, has committed US$300 000 towards its corporate social responsibility initiative aimed at building a child cancer patients home under the project’s first phase for disadvantaged children in Zimbabwe.
In a statement accompanying financial results for the year ended 31 March 2021, the group said the planned project would be implemented through the Meikles Foundation.
“The climax of Meikles Foundation’s activities during the period under review was a pledge for the equivalent of US$300 000 towards the construction of the first phase of Rainbow Children’s Village, a home for child cancer patients from disadvantaged backgrounds,” it said.
“Meikles Limited, as part of its corporate social responsibility, will pay for Meikles Foundation’s pledge towards the noble cause.”
Meikles Foundation and the group’s subsidiaries have assisted the less privileged and the needy in the communities they operate in.
Meikles has subsidiaries in sectors such as retail, agriculture, energy and hospitality industry.
During the period under review, Meikles Limited revenue for continuing operations grew by three percent to Z$28,4 billion from Z$27,6 billion in 2020. The group’s operating profit for the year from continuing operations was Z$878,3 million, down two percent from Z$894,5 million in the prior year.
“During the period under review, the group increased employee remuneration to a level, which expressed as a percentage of revenue, exceeds that of the previous year.
“The increase was in response to the erosion of employees’ salaries since the introduction of the local currency in 2019 and to cushion employees from both the effects of inflation and the Covid-19 pandemic,” it said.
All other expense items increased to a lesser extent than the growth in group profit after tax for the year from continuing operations was Z$373,3 million down from the previous year of Z$3,5 billion.
Included in the previous year’s profit is a monetary gain of Z$4,5 billion, whereas the year under review has recorded a monetary loss of Z$725,2 million, a decline of Z$5,2 billion from the previous year. The group said all foreign currency denominated debts due to Pick n Pay have been paid.
During the period under review, Tanganda Tea Company Limited was classified as a discontinued operation. Meikles Limited has also provided additional capital to Tanganda since 2011 to support the crop diversification thrust.
As at March 31, 2021, Meikles has cumulatively injected US$20,8 million for macadamia nuts and avocados plantations development, an avocado processing facility and recently for solar power plants.
“Tanganda is now in a strong financial position and well set to independently sustain its operations going forward.
“Subject to shareholders approval, Tanganda is to be unbundled in the months before the end of the calendar year and is to be separately listed,” said the company.
“It will cease to have any financial connection with the group.” It is hoped that the strategy will unlock the value of the capital invested in crop diversification for the shareholders. — chronicle.cl.zw
