Simbisa to rollout more than 30 new stores
CLOUDINE MATOLA
Victoria Falls Stock Exchange (VFEX)-listed fast food giant, Simbisa Brands Limited, is set to roll out more than 30 new stores in the first half of this year, pressing ahead with expansion plans despite a tightening fiscal environment expected to weigh on consumer spending, Business Times can report.
Board chairman Addington Chinake said the group remains confident that the operating environment will stay broadly stable through to the financial year-end, underpinned by anticipated currency stability, firm commodity prices and a strong agricultural season.
“The group will continue to expand its footprint, with 31 new stores planned for rollout over the next six months to the financial year-end. Concurrently, 21 existing stores are scheduled for refurbishment during the same period,” Chinake said.
He acknowledged, however, that additional fiscal tightening measures and tax increases introduced in Zimbabwe from January 2026 are likely to exert further pressure on disposable incomes.
“The trading environment is expected to remain broadly stable through to the financial year-end, through anticipated currency stability, firm commodity prices and a strong agricultural season in Zimbabwe. However, additional fiscal tightening and tax increases introduced from January 2026 in Zimbabwe are expected to place further pressure on consumer disposable incomes,” he said.
Chinake noted that Simbisa will continue to pursue a customer-centric, brand-focused growth strategy anchored on service excellence. The strategy will be supported by value-led promotions, targeted new product development and ongoing store refurbishments.
At the core of the group’s strategy is the delivery of a fast, varied and convenient dining experience. This will be driven by the further expansion of delivery services, an accelerated rollout of drive-through formats and the introduction of new brands to broaden the portfolio and appeal to a wider range of customer preferences.
Financially, the group posted strong performance during the period under review. Revenue grew by 16 percent year-on-year to US$182,75m from US$157,47m recorded in the comparable period in 2024, buoyed by a 10 percent increase in customer volumes and a 6 percent rise in average spend.
Operating profit surged by 27% to US$31,85 million from US$25,04m in the prior comparative period, reflecting improved efficiencies and robust topline growth.
Cash generated from operating activities increased by 24% to US$36,50m from US$29,35m, representing a 115m operating profit-to-cash conversion rate — a strong indicator of earnings quality.
Profit before tax rose sharply by 76% year-on-year to US$20,44m, up from US$11,60m in the previous comparable period.
The expansion drive signals management’s confidence in the resilience of consumer demand and its long-term growth strategy, even as fiscal headwinds threaten to test household spending power in the months ahead.
