Simbisa Brands’ operating profit jumped 27 percent to US$31,9 million in the half-year to December 31, 2025, driven by solid volume growth, cost containment and store expansion across regional markets.
Similarly, the quick-service restaurant operator’s profit before tax surged 76 percent to US$20,4 million.
The Victoria Falls Stock Exchange-listed group said profitability was driven by a 16 percent increase in revenue to US$182,8 million from US$157,5 million in the comparable period last year.
Profit attributable to equity holders of the parent company climbed to US$15,5 million, translating into headline earnings per share of 2,80 US cents, up from 1,58 US cents in the prior period last year.
In a statement accompanying the results, chairman Mr Addington Chinake said the group had delivered a resilient performance despite operating in mixed economic conditions across its markets.
“During the six months ended December 31, 2025, the Group delivered a strong performance despite the varied and often challenging economic conditions across its core markets,” he said.
He noted that while currency stability and contained inflation provided some macroeconomic support, elevated taxation and high living costs continued to weigh on disposable incomes.
“Against this backdrop, the group’s customer-centric, brand-focused strategy continued to drive growth, underpinned by compelling value propositions, expansion of delivery channels and disciplined cost containment,” said Mr Chinake.
The group served 27,2 million customers in Zimbabwe during the period, helping drive a 10 percent increase in customer volumes at the group level. Real average spend improved by 6 percent, reflecting growth in delivery channels and value-led promotions.Made in Zimbabwe branding
Cash generated from operating activities increased 24 percent to US$36,5 million, representing a 115 percent operating profit to cash conversion rate. The stronger cash flows supported both capital expenditure and shareholder returns.
The board declared an interim dividend of 0,934 US cents per share, up 51 percent from 0,620 US cents in the prior period. A dividend of US$262 540 was also approved for the Simbisa Employee Share Trust.
Mr Chinake said the dividend growth reflected the group’s confidence in its cash generation capacity and long-term prospects.
At an operational level, the group added a net 14 new stores between December 31, 2024, and December 31, 2025, and refurbished 21 outlets. Temporary food trucks were deployed at selected sites to minimise trading disruptions during refurbishments.
In Zimbabwe, revenue grew 19 percent year-on-year, supported by a 10 percent increase in customer volumes. Delivery orders surged 74 percent, helping lift overall average spend by 9 percent and cushioning the impact of the fast-food tax, which the company absorbed.
The Zimbabwean operation opened 11 new stores and closed 10 during the year, ending the period with 340 counters.
Despite elevated input costs, power supply disruptions and the continued burden of the Intermediated Money Transfer Tax, operating margins improved on the back of strict cost controls and enhanced supplier engagement.
Regional operations also posted solid growth. In Kenya, customer volumes rose 12 percent, while revenue increased 8 percent in US dollar terms despite a 4 percent decline in average spend due to intensified value promotions. Delivery orders in that market grew 60 percent.
The Kenyan unit opened nine new outlets and closed five, bringing total active stores to 259, with 11 refurbishments completed.
Eswatini delivered the strongest revenue growth at 23 percent year-on-year, driven by an 11 percent rise in customer volumes and an equivalent improvement in average spend. Two new stores were opened in the second quarter, with full contributions expected in the second half.
Group chief executive officer Mr Basil Dionisio said the decentralised, brand-focused operating model continued to yield positive results across markets.
“The group delivered 16 percent revenue growth in H1 FY2026 compared to the prior year, underpinned by a 10 percent increase in customer volumes and a 6 percent improvement in real average spend,” he said.
“Operating profit increased by 27 percent year-on-year, despite aggressive promotional activity and the absorption of the new fast-food tax in Zimbabwe, reflecting the benefits of rigorous cost discipline and enhanced supplier engagement during the period under review.”Made in Zimbabwe branding
Looking ahead, Mr Chinake said the trading environment was expected to remain broadly stable through to year-end, supported by anticipated currency stability, firm commodity prices and a strong agricultural season in Zimbabwe.
However, additional fiscal tightening and new taxes introduced from January 2026 could place further pressure on consumers.
The group plans to roll out 31 new stores over the next six months and refurbish a further 21 outlets. Digitisation initiatives, solarisation pilots and ongoing supplier engagement are expected to support sustainable margin enhancement.
“We remain firmly committed to delivering long-term value for all stakeholders,” said Mr Chinake. “The Group continued to deliver sustainable growth in H1 FY2026, while offering customers a world-class dining experience, through strategic agility, service excellence and a strong operational focus.”
With a strengthened balance sheet, improved profitability and expanding footprint, Simbisa appears well-positioned to sustain momentum in the second half of the financial year.-herald
