Simbisa declares strong profit growth
OPERATING profit at the quick service restaurant Simbisa Brands Limited increased by 22,2% to US$24,67 million during the half year ended December 31, 2023 compared to the prior period. The group made a profit despite a harsh operating environment, characterised by high inflation, power cuts, and exchange rates volatility among other economic ills.
In its interim financial for the half year ended December 31, 2023, the company’s chairperson Addington Chinake said revenue rose by 7,4% to US$147,75 million.
Total assets declined by 8,4% to US$170,9 million for the period under review, while headline earnings for the period were US$9,71 million, an increase of 0,6%.
Headline earnings per share was US$0,0173 cents for the half year.
During the half year, the group completed the acquisition of the Eswatini business which was previously a franchisee market.
Simbisa also restructured the underperforming markets (Zambia, Ghana, and Mauritius) by transitioning them into franchised operations under the management of highly experienced franchisees in the group.
“This will allow Simbisa's executive team to focus resources on maximising shareholder returns from core markets,” Chinake said
The board resolved to declare an interim dividend of US$0,62 per share. Furthermore, the board approved a dividend of US$174 277 to the Simbisa Employee Share Trust.
"The dividend will be payable in US dollars on or about March 20, 2024 to shareholders registered in the books of the company at the close of business on March 15, 2024. The last day to trade cum-divided is March 12, 2024, and the ex-dividend date is March 13, 2024,” he said.
The interim dividend for the period under review declined by 29,5% to US$0,62 from US$0,88 declared during the same period in the previous year.
The board of directors also resolved to appoint Nabil Mankarious as an independent non-executive director with effect from February 23, 2024.
Simbisa, which has risen from its Zimbabwean roots to establish a formidable African network, executes its strategy through a string of high-end hospitality brands including the flagship Chicken Inn, Pizza Inn, Creamy Inn and Bakers Inn.
Rocomamas, Nandos, Steers and Galito’s, are also part of the group, which has a presence in several African markets including Mauritius and Kenya. Its footprint have also spread to Ghana, the Democratic Republic of Congo and Zambia.