Categories: Stories

Choppies  operations in Zimbabwe raise $82million

Regional grocer Choppies says revenue in its Zimbabwe operations rose to $82 million (BWP 863 million) in the full-year to June 30 despite declining disposable incomes, and plans to continue expanding its footprint in the country.

Earnings before interest, tax, depreciation and amortisation (EBIDTA) from the operations was also higher at $2.9 million (BWP 30 million) after the group added seven new outlets to 20 during the year.

“The dollarized Zimbabwe economy remains fragile. Average basket sizes dropped considerably but footfall growth was very strong indicating a growing popularity of the Choppies brand,” said the group in its financials released yesterday.

At group level, Choppies revenue increased to $567 million (BWP 5.95 billion), 19 percent higher than last year with  64 percent derived from its Botswana operations at $363 million (BWP3.8 billion).

Net profit stood at $18.8  million (BWP197 million) with earnings per share up by 20 percent to $1.63 (17.11 thebe).

It reported a loss in South Africa where it operates 37 stores, mainly in the North West where pressures facing the country’s mining sector have hurt household finances.

Overall, Choppies has 129 stores across Botswana, Zimbabwe and South Africa and plans 35 new outlets by end of 2016.

It raised $42.85 million (BWP 448 million) from its secondary listing on the Johannesburg Stock Exchange in May which it used to lower its debt and increase its cash holdings.

In May, the company entered Kenya, through the acquisition of Ukwala Supermarkets — a group that has 10 supermarkets — which is yet to be approved by that country’s competition authority.

It is also facing ‘a few months’ delays in rolling out in Zambia and Tanzania.- The Source

(185 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024