Simbisa restructures Mauritius operations
PAN Africa fast foods chain, Simbisa Brands is pursuing multipronged strategies to restructure its Mauritius operations including growing its footprint, according to chief executive officer, Basil Dionisio.
The firm that operates some of Zimbabwe’s most recognised fast foods chains like Chicken Inn said it wants to review costs by remodelling serving points to reduce rental costs.
Along with the cost cuts, an aggressive expansion drive will be launched targeting previously untapped high density markets during 2021.
Some outlets will be permanently closed, Dionisio said in a commentary to the group’s financial results for the half year ended December 31, 2020.
From its Zimbabwean roots, the Zimbabwe Stock Exchange listed firm has recently expanded across Africa with its footprint now in Ghana, Namibia, Mauritius, Kenya, Zambia and Zimbabwe.
“The Mauritius business has initiated the first phase in the three-phased recovery plan, as presented in the FY2020 (financial year) results release,” Dionisio said.
“The first phase entails restructuring the format of the counters from a table service to a counter service QSR (quick service restaurant) model which requires less rental area and reduced staff.
“In 2Q (second quarter) FY2021, the first complex was converted, which entailed the closure of one Creamy Inn counter, the restructuring of a Pizza Inn counter into a QSR format and the restructuring and relocation of a Galito’s counter.
“We have already seen the exercise start to bear fruit, with growth in revenue and significant cost savings being realised between 1Q and 2Q FY2021.
“The second phase of the recovery plan will be to grow our footprint through the roll-out of new counters under the re-modelled business format and the third phase development into new, high-density regions. “Difficult operating conditions, temporary store closures during the restructuring exercise and the permanent closure of one counter led to a 10% year-on- year decline in customer counts.”
Simbisa’s inflation adjusted revenues increased by 101% to $8 billion during the review period, compared to $3,9 billion during the same period prior year.
Profit after tax profit grew to $850 million, from $446 million previously.
Revenue generated by regional operations fell 14% year on-year in United States dollar terms, but increased by 500% in inflationadjusted in Zimbabwe dollars to $2,98 billion, from $498 million previously.
Simbisa chairman Addington Chinake said the board had resolved to declare an interim dividend of ZWL 53 cents per share, from ZWL 5,07 cents per share during the same period in 2019.