Africa-Press – Eswatini. The value of retail outlets in the country has declined by 12.01 per cent to stand at E1.3 billion at the end of March.
According to Financial Services Regulatory Authority (FSRA) Quarterly statistical Bulletin for the first quarter of 2023, the decline was attributable to the decrease in cash and cash equivalents and the provision of bad debt.
FSRA further linked the decrease to seasonal fluctuations in sales and the reduced credit risk which was a result in the retail outlet’s customer base.
The retail outlets were, however, reported to have recorded gross income of E18.75 million which showed 2.39 per cent growth in a quarterly basis.
Growth
FRSA attributed the growth to the 6.46 per cent increase in interest income from credit extension.
“Overall, the total income decreased by 12.63 and was driven by decline in provision for bad debts and bad debts recovered. This was an indication that retail outlets were expecting fewer of its customers to default on their debts,” reads the report.
The report further highlighted that the sector’s net operating income grew by 19.95 per cent to E52.34 million.
The growth was said to be driven by a decline faced in operating expenses, naming administrative expenses and personal expenses, which decreased by more than 60 per cent combined.
On the liability side, total liabilities were said to have declined by 16.94 per cent to E538.76 million on a quarterly basis.
The report indicated that the decline was mainly a result of the 17 per cent decrease in payables and financial liabilities, linked with the 5.51 per cent decrease in borrowing.
FSRA also highlights that retail outlets have been paying off some of their debts such as loans.
Therefore, the sector’s equity position during the quarter under review declined by 9.19 per cent in retained income.
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