Quick service restaurant group, Simbisa Brands Limited’s revenue for the third quarter increased 68% on prior year in inflation adjusted terms due to the relaxation of the Covid-19 rules and the opening of new shops.
The cash-rich entity is leveraging on the opening of new counters in both Zimbabwe and the region.
In a third quarter trading update ending March 31 2021, Simbisa chief executive Basil Dionisio said year to date revenue increased 87% in inflation adjusted terms due to an improvement in sales.
“Simbisa group revenue in Q3 FY21 increased 68% on prior year in inflation adjusted terms while the Zimbabwe operations’ third quarter revenue 2% in inflation adjusted year-on-year and 30% on year to date revenue in inflation-adjusted terms,” he said.
Dionisio said the year to date customer counts were down 16.7% versus prior year, with the Zimbabwe operations trading on 25% less counter hours than at full capacity.
Average spend increased by 56% year-on-year in real terms, driving the growth in revenue.
The lockdowns had a significant impact on counter trading hours; the Zimbabwe operations traded on 45% less counter hours than would have been realised when trading at normal operating hours and seating capacity was reduced to 50%.
Resultantly, customer counts were down 34.3% in Q3 FY21 compared to the prior year.
Simbisa footfall has recovered since trading restrictions were relaxed from March; the business grew customer counts by 12% in March 2021 versus prior year.
He said despite the consumer spending power remaining under pressure in the market, Simbisa Zimbabwe achieved real growth in average spend in Q3 FY2021 versus the prior year comparable period.
The US dollar average spend increased 32% and ZW Dollar average spend increased 417%, ahead of inflation, versus prior year.
The year to date customer counts in the regional business fell 13% against prior year, trading off 22% less trading hours.