LIVINGSTONE MARUFU
Simbisa Brands is targeting to roll out 180 potential projects in the next two financial years across Africa as it expands its footprint.
In a first-quarter trading update, Simbisa group CEO Basil Dionisio said the group continues to venture into new projects despite economic headwinds with significant currency devaluations and record-high inflation levels in our operating markets.
“A substantial investment pipeline, with 180 potential projects identified over the next two financial years, will drive growth and unlock shareholder value.
“The primary growth markets in the short to medium term will be Kenya and Zimbabwe. However, the group remains vigilant of new growth opportunities in existing and potential new markets and continues exploring business development options,” Dionisio said.
“In the short to medium term, the focus will remain on growing revenue streams from the delivery segment through scaling operations and improving the customer experience.”
Simbisa performed remarkably well in the quarter under review, despite the economic headwinds and continues to ride the wave of economic recovery from the effects of the pandemic.
The group initiated a pricing strategy that resulted in menu price increments executed in a minimal and phased approach to mitigate the impact on customers to ensure the business remains resilient to the new challenges faced.
The strategy aimed to increase prices as much as necessary to hedge against the effects of inflationary pressures whilst ensuring the business remains price-competitive in a price-sensitive environment.
“Total customer count for the group increased by 36.2% r to 14.38mn in the 2023 first quarter from 10.56mn recorded during the same period last year, driven by new store growth as well as increased footfall in existing stores as a result of promotional activity and value offerings in the period.
The Zimbabwe operations opened 26 counters between 30 September 2021 and 30 September 2022, with 3 new counters opened in the quarter under review to close the period with 263 counters.
In the outlook, the group will focus on growing revenue streams from the delivery segment through scaling operations and improving the customer experience.
Subject to shareholder approvals on November 18, 2022, Simbisa is on track to list on the Victoria Falls Stock Exchange on December 2, 2022.
