Simbisa delivers resilient performance in interim period
Simbisa Brands Limited’s Zimbabwe operations delivered a mixed third-quarter performance for the period ended March 31, 2025, while customer numbers surged by 6 percent over nine months, buoyed by organic growth, the group reported in a trading update.
“Our promotional activities and value-meal offerings have clearly resonated with consumers, driving meaningful increases in footfall,” reported Simbisa Brands Limited chief executive officer Basil Dionisio.
In a sign of persistent price sensitivity, average spend per customer showed little movement compared to the prior period, effectively remaining flat across the quarter.
Despite the flat spend per head, revenue for the third quarter of 2025 in Zimbabwe edged up by 1 percent year-on-year, underpinned by that marginal uptick in average transaction value. Customer footfall, however, was unchanged from the prior year at 11,2 million visits for the quarter.
Mr Dionisio cautioned that, “While our top-line growth reflects the strength of our customer-centric promotions, maintaining profitability amid rising cost pressures requires relentless focus on operational efficiency.”
Indeed, Simbisa faced several inflationary headwinds during the quarter, including higher energy expenses driven by increased generator usage, elevated fuel and maintenance costs, and an uptick in the Intermediate Money Transfer Tax from 1 percent to 2 percent in April 2024.
In response, the company has rolled out stringent cost-management measures, emphasising energy efficiency, tighter maintenance controls, and optimisation of staffing structures to protect margins.
The network footprint in Zimbabwe underwent a modest refresh, two new counters opened in the quarter under review, while eight underperforming outlets were shuttered, leaving 333 trading counters at quarter-end.
Over the full nine-month period, Simbisa added a net of eight new counters and completed refurbishments at seven legacy outlets under its strategic infrastructure upgrade programme.
Looking ahead, Mr Dionisio reaffirmed the expansion trajectory, “We plan to open four new counters in the final quarter of the financial year 2025, and have 40 new Zimbabwe outlets and 39 refurbishments lined up for the financial year 2026.”
The quarter to March was characterised by relatively stable domestic currency conditions in Zimbabwe, after the Reserve Bank’s tight monetary policy kept the exchange rate steady from January through March 2025.
However, this stability came at the cost of liquidity constraints that complicated both day-to-day operations and longer-term planning.
Concurrently, persistent inflation, fiscal tightening, and the introduction of a 1 percent fast-food tax on January 1, 2025, squeezed consumer purchasing power, rendering the market highly price-sensitive.
In this context, Simbisa’s aggressive promotional campaigns and value-meal offerings served to defend market share and stimulate organic volume growth.
Nevertheless, Mr Dionisio acknowledged, “The combination of rising input costs and new tax measures inevitably placed pressure on our gross profit margins.
“Our teams have risen to the challenge, driving year-on-year profitability growth both in the quarter and across the nine-month period.”
Looking toward the final quarter of 2025, Simbisa’s management remains cautiously optimistic. Store refurbishments, menu innovation and enhancements to delivery channels are expected to bolster the customer experience and drive further footfall.
At the same time, relentless cost-efficiency measures and supply-chain optimisation will be essential to offset ongoing inflationary pressures.
“Our focus remains on creating value for our customers while safeguarding the resilience and profitability of our business,” Mr Dionisio concluded.
With customer counts on the rise but average spend showing signs of plateauing, Simbisa’s Zimbabwe operations must balance growth-oriented initiatives with rigorous margin control if they are to sustain momentum into financial year 2026.-herald
