Simbisa Brands says its revised pricing strategy, featuring price markdowns on several menu items, has stimulated growth in customer volumes, more than compensating for the softer gross profit margins. Group chief executive Mr Basil Dionisio said this in a trading update for the first quarter ended September 30, 2025, noting that overall performance was further buoyed by favourable macroeconomic conditions across the group’s markets.
“Improved consumer demand has been supported by stable currencies, favourable weather patterns and strong commodity prices. We continue to observe a notable shift in consumer behaviour, with increasing preference for convenience reflected in the strong growth of our delivery segment,” he said.
For the quarter under review, the group achieved a 13 percent year-on-year increase in revenue to US$84 million, supported by a 9 percent growth in customer volumes to 16,8 million and 4 percent rise in average spend to US$5,01.
In the period between September 30, 2024, and September 30, 2025, Simbisa added a net total of 20 new counters.
“In alignment with our customer-centric strategy, the group has shifted its focus towards modernising the existing store network to elevate the customer experience and maintain globally competitive brand standards.
“As at September 30, 2025, the group operated a total of 733 outlets, comprising 607 company-owned and 126 franchised counters,” said Mr Dionisio.
In Zimbabwe, revenue grew by 16 percent year-on-year in the first quarter of financial year 2026 to US$ 61,1 million, supported by a 9 percent increase in customer volumes to 13,2 million and a 6 percent rise in average spend.
The company highlighted that significant improvements in customer service have strengthened brand loyalty and encouraged repeat visits.
“The uplift in average spend was primarily driven by increased delivery orders, which grew 74 percent year-on-year in Q1 FY2026,” said Mr Dionisio.
The group’s store network in Zimbabwe expanded by a net total of 8 new counters between September 30, 2024, and September 30, 2025, including 22 store openings and 14 store closures, to end the period with 338 trading counters at the end of the first quarter of FY2026.
During the same period, 6 counters were refurbished as part of the infrastructure upgrade programme.
In Kenya, customer volumes grew by 9 percent year-on-year to 3,3 million, offsetting a 3 percent decline in average spend to US$6,43 and resulting in a 6 percent increase in revenue to US$21 million.
Mr Dionisio said the drop in average spend reflected heightened price sensitivity, to which Simbisa Kenya responded by introducing more affordable value-meal options.
He said store expansion in Kenya continued, though at a slower pace, as the focus shifted towards capital investment and driving footfall into the existing store network.
During the 12 months to September 30, 2025, the business recorded 5 new store openings and 6 closures, ending the period with 252 counters; additionally, 6 counters were refurbished over the same period.
In Eswatini, the positive momentum in operational performance seen in the second half of FY2025 carried through into the first quarter of FY2026, supported by stable economic conditions, a strengthened customer-centric strategy and the leadership of a strong new management team.
Revenue grew by 10 percent year-on-year to US$1,5 million, driven by a 9 percent increase in customer volumes to 293 000 and a modest 1 percent uplift in average spend to US$5,05.
“Although margin pressures arising from the group’s value-driven pricing strategy and persistent inflationary input costs moderated bottom-line growth, the market nonetheless delivered an increase in profitability,” said Mr Dionisio.
Looking ahead, the group said it remains focused on accelerating its customer-centric growth strategy through continued investment in digital transformation and service excellence.
The group also plans to expand its footprint, with a net of 66 new stores in the pipeline through to the end of FY2026.
“This includes the exciting launch of our newest brand, Pastino, with 2 outlets scheduled to open in Harare in 2H (second half) FY2026.
“On the cost management front, we are actively driving efficiencies through our digitisation journey, solarisation pilots and optimising staffing structures under the new decentralised, brand-led operating model,” he said.-herald
