Simbisa targets 27 new outlets this year
LISTED Simbisa Brand plans to expand its footprint by rolling out 27 new outlets in the 2024 financial year to bring the total to 47 amid indications that customer count growth was subdued, increasing just 1 percent in 1H FY 2024 versus the prior year.
In its interim financial for the half-year ended December 31, 2023, the chairman, Mr Addington Chinake noted that Zimbabwe opened 31 new counters between December 31, 2022 and December 31, 2023, 20 of which were opened in the half-year under review.
“There are an additional 27 new counters in the pipeline for 2H FY 2024 to bring the total number of new store openings for FY 2024 to 47,” he said.
Mr Chinake added that operations achieved revenue growth of 10 percent for the HY period under review, largely driven by an increase in average spend, which increased 9 percent versus the prior year, and new store rollouts.
“Customer count growth was subdued, increasing just 1 percent in 1H FY 2024 versus the prior year, a result of the challenging operating environment putting pressure on consumer disposable incomes.
“To counter the inflationary pressures on Gross Profit and Operating Margins, management has been leveraging the brands’ economies of scale to negotiate competitive prices from suppliers and service providers, engaging landlords to negotiate favourable rentals and aligning staff numbers to shop size to manage staff costs.”
Going forward, Mr Chinake said the Group remains focused on increasing revenue contribution from delivery channels.
“In Zimbabwe, the total number of deliveries increased by 24 percent in 1H FY 2024 versus 1H FY 2023.
“To continue growing sales through delivery channels, Simbisa Zimbabwe will expand the number of stores with delivery services to expand its geographical reach to as many customers as possible.”
To increase brand visibility, in January the listed entity launched the new Chicken Inn and Pizza Inn apps to be followed in 2H FY 2024 by the remaining brand apps for Rocomamas, Ocean Basket and Spur.
“The new brand apps will improve brand visibility and be used to launch exclusive in-app promotions to drive delivery sales growth.
“An intensive marketing plan will be rolled out in 2H FY 2024, targeting existing and new promotions and value offerings to counter the decline in customer spending power without compromising GP Margins. Simbisa remains committed to refining the quality of products and improving customer service through continuous training, new product development and enhanced compliance with brand Standard Operating Procedures,” noted Mr Chinake.
Simbisa Brands has an extensive footprint in Africa, with outlets in Zimbabwe and 10 African countries, including Kenya, Ghana, Mauritius, Botswana, the DRC, Malawi, Swaziland, Lesotho and Zambia.-herald
