Simbisa splurges US$14m on new outlets
RYAN CHIGOCHE
Zimbabwe Stock Exchange-listed food chain, Simbisa Brands Limited, is rolling out 69 new outlets across Africa at a cost of US$14m as it expands its footprint, it has been learnt.
Simbisa chairman, Addington Chinake, said the expansion project will be completed by June this year.
The quick service restaurant operates Chicken Inn, Pizza Inn, Baker’s Inn, Galito’s Africa, Nando’s, Steers and Vida & Caffe brands across Africa.
Of these 69 new outlets, 19 are set to be opened in Zimbabwe while 29 will be opened in Kenya, Democratic Republic of Congo (10 franchise stores), Ghana (9) and one apiece in Zambia and Mauritius.
“The board is confident of the growth prospects of the group and the economic environments in the different countries of operation.”
Chinake added: “By the end of calendar year 2022, the group should be operating 623 counters. Although Covid-19 will continue to influence business operations and decisions, the board will pursue the expansion of Simbisa.”
In its financial results for the six months to December 31, 2021, revenue for Simbisa grew 54% to ZWL$16.9bn from ZWL$11bn reported in the prior comparative period.
Profit jumped 75% to ZWL$2.2bn from ZWL$1.2bn reported in the same period in the previous year.
Chinake said the main driver of growth in Zimbabwe was an increase in customer counts of 18%.
In the region, revenue increased by 36% in United States dollars, mainly from a 28% increase in customer counts.
As their strategic focus, in Zimbabwe which is their largest market, significant capital investment is being made in upgrading the operation central stores to increase and make more efficient the storage capacity as well as further automating and streamlining the production process at the central kitchen.
The first phase of the project was completed with the construction of the stated chip processing equipment, which has proven to be very effective in increasing processing times through increased automation as well as increasing efficiencies for enhanced product quality and reduced waste.
In the short to medium term, Simbisa is focusing on optimising operational and franchising organisational structures across its markets to focus on a more brand-oriented structure with the goal of boosting operational focus and increasing human resource efficiencies.
Simbisa CEO, Basil Dionisio, is anticipating growth in profitability which will be driven by the steady relaxation of the trading environment and also the investment in the new 69 new outlets.
“With the gradual easing of trading restrictions in our operating markets and resultant improvement in trading activity, there has been a recovery in customer counts which is expected to boost top line growth in the short to medium term. Thus, a recovery in revenue will translate to growth in profitability and improved shareholder returns and value delivery,” Dionisio said.
He added: “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.”
