Red Star Holdings Limited

2,483 views

Published on

Red Star Holdings Limited offers a variety of consumer products whose range includes, dry groceries, household products, hardware, liquor, health and beauty products, cigarettes, beverages, stationery, building materials and electrical products.

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,483
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Red Star Holdings Limited

  1. 1. Red Star Holdings Limited Corporate Presentation for the period ending 31March 2009 Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country.
  2. 2. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Information contained herein was extracted primarily from Red Star Holdings Limited (“Redstar”) publications and annual reports. While every effort was made to ensure that the content is accurate, AfricanSmallCaps (“ASC”), its employees and any third parties do not warrant the accuracy, adequacy, completeness or timeliness of the data contained herein. The use of the data here-contained is at the sole risk of the user. Users of this data shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of Redstar. Disclaimer
  3. 3. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Red Star Holdings Limited Red Star Holdings Limited (RSHL) was registered on the 14th July 2005, prior to it being listed on the Zimbabwe Stock Exchange. Trading of shares commenced on January 3rd 2006. Red Star Holdings Limited has thirty-three outlets comprising twenty-five Red Star Wholesalers branches, three Advance Wholesalers branches, one Spar Corporate Store , one SaveMor Corporate Store and one Spar distribution Centre. The  Group acquired R Chitrin and Company Zimbabwe (Pvt) Ltd in April 2006 which comprises a wholesale unit, and a beverage centre.
  4. 4. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Operational overview Hwange Plumtree Bulawayo Gwanda Gokwe Gweru Chinhoyi Chegutu Kwekwe Zvishavane Masvingo Karoi Kadoma Victoria Falls Harare Bindura Chitungwiza Mount Darwin Chipinge Murehwa Mutoko Rusape Mutare Red Star Wholesalers branches Advance Wholesalers branches R Chitrin & Company branches
  5. 5. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Hwange Bulawayo Gwanda WESTERN REGION Spar Corporate Stores Rusape Spar Western region Distribution Centre SaveMor Corporate Stores Operational overview… cont’d
  6. 6. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Hwange Plumtree Bulawayo Gwanda Chiredzi Beitbridge Gweru Zvishavane WESTERN REGION Victoria Falls Spar franchised stores SaveMor franchised stores Masvingo Operational overview… cont’d
  7. 7. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Chairman’s statement The Global economy experienced a devastating financial crisis caused by the credit crunch in the First World which affected commodity prices. This had a negative impact on the disposable incomes in Zambia where Red Star Holdings Limited (RSHL) had just established its regional operation. The retail sector in Zimbabwe operated under an extremely difficult environment characterised by excessive hyperinflation, with transactions occurring at widely different cash and cheque rates. The socio political environment remained turbulent and tense. Product availability was a big challenge, with an average order fill rate of below 15%, as local suppliers were also experiencing raw material and working capital challenges. From October 2008, retailers could apply for licences to sell in foreign currency with 7,5% of sales being surrendered to the Reserve Bank. The off-take was slow as most large corporate retailers did not have any foreign currency reserves.
  8. 8. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Chairman’s statement The informal sector, which invariably evaded controls, flourished at the expense of the formal retailers and wholesalers. In February 2009, the foreign exchange market was liberalised and all entities could trade in foreign currency with no surrender levels to the Reserve Bank. Inflation adjusted financial statements, in accordance with IAS 29 (Financial Reporting in Hyperinflationary Economies), have not been prepared due to the absence of official inflation indices and the inability to reliably measure inflation by other means. Historical cost financial statements have been audited and are presented purely for compliance with the Companies Act and the Zimbabwe Stock Exchange regulations but are of little value to shareholders. In order to provide shareholders with a more meaningful analysis of performance, an abridged balance sheet in United States Dollars (US$) is presented hereunder as supplementary information.
  9. 9. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. CEO’s statement Red Star Holdings Limited (RSHL) continues to pursue a number of clear strategies premised on effective leadership, management and employee empowerment, and stakeholder relations. Focus on these basics is expected to enhance our competitiveness, stakeholder relationships and promote sustainable growth of the company and its earnings. Strategic implementation The Group's strategy was outlined in this report last year (Vision 2011) and my discussions at various Analysts' Briefing sessions over the past two and half years. The strategy, however, evolved throughout the past financial year in wide ranging implementation initiatives. Focus was mostly centred on regional business growth and protecting local business from the challenges facing Zimbabwe. The Group, however, adopted a conservative approach to local expansion due to a combination of factors, namely product supply challenges, constrained margins and unavailability of good store cites in the target markets.
  10. 10. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. CEO’s statement… cont’d Three Red Star Wholesalers (Private) Limited stores were opened during the year while the Zambia project started trading on a low note in April 2008. The Information Technology Project came back on stream following a "win-win“ arrangement that we entered into with the software vendor. Detailed updates are given in the relevant sections of this report. Operational review The Group's operating units namely Red Star Wholesalers (Private) Limited (Red Star), Advance Wholesalers (Private) Limited (Advance) and R Chitrin & Company Zimbabwe (Private) Limited (R Chitrin) performed relatively well. However, the consolidated performance was affected by rising operating costs, and the introduction of Red Star Distributors Zambia Limited (RSDZL) which had not started trading as at the end of the financial year under review. In addition, the performance was adversely affected by product shortages, price controls and challenging trading environment.
  11. 11. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Group financial performance
  12. 12. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Group financial performance cont’d…
  13. 13. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Share information
  14. 14. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Dividends In view of the Group's performance, the Board has decided not to declare a dividend for the year ended 28 March 2009.
  15. 15. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Conclusion Questions?
  16. 16. Red Star Holdings Limited has Zimbabwe’s largest wholesale infrastructure - including twenty-five Red Star Wholesalers and three Advance Wholesalers branches in all major towns, offering a range of consumer products, reaching the remotest parts of the country. Thank you…

×