Simbisa Brands doubles profit to $850m
The country’s fast food chain, Simbisa Brands, posted an inflation adjusted net profit of $850.4 million for the six months ending December 2020, almost doubling its earnings despite the Covid-19 induced lockdowns that impacted on most economic activities.
Revenue was up to $8 billion from $3.9 billion, pushed by income from regional operations, a performance which company chairman, Addington Chinake described as “pleasing.”
“Our management teams and staff have responded well to the ever-changing environment and are to be commended,” he said.
“The results for the half-year ended 31 December 2020 bear testament to their hard work and resilience.”
The company declared an interim dividend of $0.53 cents per share while the employees share trust will get $14 897 897.
As a result of the improved profitability, basic earnings per share nearly doubled to 150.15 cents from 78.73 cents.
Chinake said the business had put in place action plans, readying it for a potential Covid-19 third wave.
Simbisa Brands is the parent company for Chicken Inn, Nandos, Creammy Inn among others and has operations in the region in countries including Kenya, Zambia, Mauritius, Ghana and Namibia.
The company opened its 500th store during the period, with 15 new ones having been opened outside Zimbabwe.
“The group maintained a long-term view on growth opportunities and continued its expansion activities,” Chinake said.
He lauded efforts being made by the Zimbabwean government to stabilise the local currency.
“For this, we commend them. However, we urge the authorities to fine tune the reforms further by, for instance, removing the remaining foreign exchange and pricing arbitrage opportunities that arise from the growing disparity between the auction rate and the so called “market rates” which may hurt the progress achieved to date,” Chinake said. – Business Writer/NewZiana.
