Simbisa FY revenue jumps 108%

BUSINESS REPORTER

 

Quick service restaurant group, Simbisa Brands Limited’s revenue for the year to June 30, 2021, more than doubled to ZWL$18.8bn from ZWL$9bn reported in the prior comparative period despite the adverse effects of Covid-19 pandemic, Business Times can report.

Profit for the cash-rich entity, which operates Chicken Inn, Pizza Inn, Baker’s Inn, Galito’s Africa, Nando’s, Steers, and Vida & Caffe brands across Africa, grew 97% to ZWL$2.2bn in the reviewed period from ZWL$1.1bn in the same period last year.

“The main driver of growth in Zimbabwe was an increase of 34% in average spend with customer counts increasing by 8%.

In the region, excluding the impact of the Zimbabwe dollar exchange rate depreciation, revenue increased by 5% in US$ terms from a 2% increase in customer counts and a 3% growth in average spend,” chairman Addington Chinake (pictured) said.

He said the group is targeting to build 92 new stores in the next financial year at a cost of close to US$20m as the group moves to consolidate its footprint in Africa.

“The Group’s focus remains on growing our footprint with 92 new stores in the pipeline in FY22 at an estimated investment cost of USD 19,261,637. Of these stores, 8 will be Drive-thru sites in line with increased focus on diversifying the Group’s customer service channels,” Chinake said.

He said the group will continue to improve operating efficiencies as witnessed in improved operating profit margin despite the impact of Covid-19 on customer counts.

The company said as part of the strategy to leverage technology to improve efficiencies and drive growth in the business, Simbisa is moving onto an upgraded ERP system, as previously communicated to stakeholders.

The scoping and design phase has been completed and the implementation of the system is in progress with Simbisa’s largest market, Zimbabwe, having migrated onto the new system from  July 1, 2021.

The system is expected to unlock significant value through increased automation of work processes and improved system efficiencies and employee effectiveness.

He said Simbisa will be maintaining high standards of health and safety in its stores

As of the date of this report, restrictions on trading hours and sit-in service remain in place in Zimbabwe and Kenya. Simbisa recorded a net new store growth of 32 stores during the year and an increase of four stores in the last quarter.

The food delivery volumes year-on-year went up 43%  as a result of the group’s elevated focus on this customer service channel which ameliorates the impact of the pandemic and aligns the business with evolving customer behaviour.

Simbisa opened one drive-thru restaurant during this financial year.

All the restaurants experienced limited trade in FY21, with the exception of Mauritius, which was under full lock-down for three weeks from March  9 2021 to  March 31  2021 (FY20: 10 weeks from 20 March 2021 to 30 May 2021).

Simbisa revenue increased by 108% to ZWL$18.7bn in 2021 from ZWL$9.04bn due to increased sales volumes.

The group recognised a net monetary gain of ZWL$227m from ZWL$564m mainly attributable to inflation hedging strategies in Zimbabwe anchored on reinvesting profits in new stores to hedge against inflation.

The board approved a dividend of ZWL$22,2m to the Simbisa Employee Share Trust.

Going forward, Simbisa is encouraged by government plans and the increasing availability and uptake of Covid-19 vaccines in the countries we operate in.

Currently, over 80% of Zimbabwe-based employees have been fully vaccinated.

The business is confident of a swift upturn in customer counts as restrictions are gradually relaxed as witnessed earlier in the just-ended financial year.

Simbisa will continue to invest in growing the Dial-a-Delivery business across all its markets leveraging on a refreshed DAD app, customised tech-enabled logistics management, call-centre platforms, and expanded delivery zones.

 

 

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