Choppies’ expansion programme in Southern Africa and East Africa is in full swing
Choppies Enterprises Ltd is expanding its presence into new regions as it recently begun operations in Namibia. The grocery retailer is also gaining market share in South Africa. Namibia is the eighth country in the Southern African region where Choppies expanding its operations.
Currently, the group has operations in Botswana, South Africa, Zimbabwe, Zambia, Kenya Tanzania and Mozambique. Choppies Enterprises Ltd is listed on both Botswana Stock Exchange and the JSE.
It generates 40% of its revenue in Botswana and it reports in Pula currency. In the results, it reported a 22% increase in revenue to P5.8billion (R7.15bn), while gross profit was up by 23% to P1.1bn.
“Despite the subdued economic environment in the country (Botswana), we maintained our market share and continued to improve our efficiencies,” the group said.
In South Africa, the group said significant improvement in the North West stores resulted in like-for-like revenue growth of 43%.
“This growth has brought us to profitability in this region and we expect this trend to continue in the second half of financial year 2018.
In South Africa it is taking on retail giants Shoprite and Pick & Pay, which have also been expanding their presence in the rest of Africa.
In KwaZulu-Natal Choppies acquired a further eight stores effective from November 1, 2017. “Increased benefits of scale and other efficiencies will improve further as we expand our footprint in this region.” The total retail space for the group increased by 17%to 340 973 m².
Zimbabwe also recorded encouraging improvement, and the company said it continues to perform better in that region despite the depressed economic conditions. “Revenue grew by 25%and EBITDA by 12% as compared to last year.
It said overall performance had improved in the other regions, but it had yet to achieve profitability.
“The opening of new stores and distribution centres in other regions is in accordance with strategies adopted by the board. In the six-month period, three stores were added in Zambia,” the group said. The group did not declare a dividend as it declares it once a year on annual results.