Simbisa revenue up 24%, calls for prudent monetary policies – NewZimbabwe.com

By Alois Vinga

LISTED restaurant operator, Simbisa Brands Limited revenue grew to 24% amid calls for Zimbabwe to continue implementing prudent monetary and fiscal policy measures.

Presenting the performance for the half year ended December 31, 2022, the chairman, Addington Chinake revealed the group fared well during the period.

“Revenue increased by 24% with the local units maintaining the lead at +31% in Zimbabwe and +12% I for the rest of the region.

“Growth in Zimbabwe is largely from an increase in customer counts of 38.4%. In the region, average spend increased by 3,8% whilst customer counts also grew by 8,3%,” he said.

Due to the positive performance, the board has resolved to declare an interim dividend of 0.88 US cents per share plus a dividend of US$248,569 to the Simbisa Employee Share Trust payable in US$.

“Zimbabwe’s economy is projected to grow in FY23 premised primarily on improved performance from mining and construction and supported by international remittances.

“The Board hopes that the authorities will continue to implement prudent monetary and fiscal policy measures,” said Chinake.

He said there are exciting prospects for the group in the remaining six months of the current financial year ending 30 June 2023 amid expectations to open a further 49 stores to close the financial year with 680 stores.

The Board will continue to invest any additional free cash generated in strategic assets to achieve the Group’s overall target growth trajectory and calls on the government to address the confusing and largely unfair Income Tax regime for corporates.

“There is also need to engender fiscal and monetary policy consistency to aid in business planning. In the Region, the group expects tough economic conditions to persist in Kenya and Ghana with customers’ disposable income remaining under pressure,” he said.

To counter such risks, various strategic initiatives are in place to mitigate the impact on customer counts and maintain operating margins by expanding the delivery business across the group as a key priority.

“The Group is rolling out brand-specific delivery applications for its flagship brands to supplement the Group’s Dial-A-Delivery application,” added Chinake.