HARARE — TM Pick n Pay returned to operating profitability in the year ended February 2026, supported by higher sales volumes, improved margins, stronger procurement efficiencies and tight cost management despite subdued consumer spending and a challenging retail environment.
The supermarket chain said disciplined execution of its business strategy enabled it to improve its operational performance while funding its expansion entirely from internally generated cash flows.
Revenue declined by 5% to ZiG12.3 billion, from ZiG12.9 billion a year earlier, but the retailer sold 6% more units during the period, pointing to stronger underlying demand and market-share gains in the second half of the financial year.
The increase in volumes was accompanied by higher customer traffic, although this was offset by a decline in average spending per shopper.
TM Pick n Pay also expanded its store network during the year with the opening of a new supermarket in Shurugwi, while its capital expenditure programme was funded without external borrowing.
A major shift in the retailer’s revenue mix was the growing contribution of US dollar-denominated sales. Dollar sales almost doubled to an average of 45% of total sales, compared with 23% in the previous financial year.
The company said the increased foreign-currency component of its sales improved procurement efficiency, strengthened stock availability and reduced pressure on working capital.
“In US dollar terms, operating profit reached US$2.0 million, reversing a loss of US$15.9 million recorded in 2025,” TM Pick n Pay chairman Fayaz King said in the group’s full-year results.
He said improved pricing discipline and greater stability in the operating environment had lifted gross margins, while management continued to focus on controlling operating costs and improving efficiency.
The supermarket division posted an operating profit of ZiG63.7 million, a significant turnaround from the ZiG516.3 million operating loss recorded in the previous year.
In US dollar terms, operating profit increased to US$2.0 million, from a loss of US$15.9 million in 2025.
Underlying profitability also improved substantially. EBITDA rose 49% to ZiG320.4 million, from ZiG215.1 million, while the EBITDA margin increased to 2.62% from 1.78%.
Measured in US dollars, EBITDA increased to US$10.1 million, from US$7.2 million.
The company’s after-tax loss narrowed by 49% to ZiG117.2 million, from ZiG228.5 million in the prior year. In US dollar terms, the loss fell to US$3.5 million, from US$6.7 million.
TM Pick n Pay said the previous year’s results had been affected by significant non-cash charges, making the improvement in underlying trading performance more pronounced.
The retailer nevertheless said its cost base remained under pressure, with several operating expenses still significantly above regional benchmarks. It said the government’s review of selected statutory and municipal charges could provide some relief if implemented.
The stronger performance was accompanied by a resilient balance sheet. The group said it did not utilise overdraft facilities or bank borrowing during the year, while US$3.2 million of capital expenditure was financed entirely from internally generated cash.
Hospitality business delivers stronger earnings
The group’s hospitality division also recorded improved operational performance during the year, although room occupancy remained unchanged at 39%.
A 9% increase in average daily room rates helped drive an 8% increase in revenue per available room, or RevPAR.
Profit after tax from the hospitality business increased to ZiG7.9 million, from ZiG1.5 million a year earlier. However, measured in US dollar terms, profit declined by 29% as higher operating costs weighed on earnings.
Following the end of the financial year, the group accepted an offer from its joint-venture partner to acquire its interest in the hospitality partnership.
The transaction remains subject to shareholder approval and the fulfilment of customary conditions, with the company expected to provide further details in a shareholder circular.
The results mark a significant improvement in TM Pick n Pay’s operating performance, with higher volumes, a growing US dollar revenue base and tighter cost control helping the retailer navigate Zimbabwe’s subdued consumer environment while continuing to invest from internally generated cash.
