Simbisa Reports 54% Revenue Growth
REVENUES at the Zimbabwe Stock Exchange-listed pan-African fast foods chain, Simbisa Brands rose by 54% to $16,9 billion during the half year ended December 31, 2021, the firm said as it unveiled plans to expand across Africa.
Simbisa’s revenue ended at $11 billion during the comparable period in 2020.
It said profit after tax increased to $2,2 billion during the review period, from $1,3 billion during the comparable period in 2020.
The group said its focus was moving from navigating COVID-19-induced challenges to continuing to grow its footprint, and create stakeholder value.
In a statement accompanying the financial results, Simbisa said with the gradual easing of trading restrictions across its markets and the improvement in trading activity, it had registered recovery in customer accounts which is expected to boost top-line growth in the short-to-medium term.
“Considerable effort has been put into managing our cost base which has seen an improvement in group operating margins in real terms,” the firm said.
“Thus, a recovery in revenue will translate to growth in profitability and improved shareholder returns and value delivery. A strong investment pipeline, as the focus moves from navigating the COVID-19-induced challenges to continuing to grow the group’s footprint, will also deliver growth and create value for stakeholders. There are a further 69 new store openings in the pipeline for the remaining six months of the current financial year,” Simbisa said.
Growth in market share remained a priority in the region, with 40 new counters opened in the period under review.
Improved operating hours and organic growth during the period saw a 21% increase in customer accounts while total deliveries shot up 53% year-on-year.
The group added that it intended to make significant progress in firmly establishing itself as a corporate that bridges the gap for people in various communities between 2022 and 2024.