Botswana Stock Exchange-listed, Choppies Enterprises Limited (Choppies), recorded a 60% increase in sales in Namibia for the year ended on 30 June 2023 attributed to strategic moves, including the opening of new stores during the year.
The retail group recorded a significant 14.4% growth in like-for-like sales growth.
According to the company’s recently released Condensed Audited Group Financial Results for the year ending on 30 June 2023, Choppies recorded EBITDA growth of 140%, coupled with a significant reduction in EBIT loss from N$12.5m (BWP9 million) to N$2.8 (BWP2 million).
Furthermore, adjusted EBIT, excluding the depreciation reassessment, decreased from N$12.5 million (BWP9 million) to N$8 million (BWP6 million) during the year.
Choppies’ expansion strategy was not limited to Namibia alone, “as the Rest of Africa region also witnessed substantial growth, with sales increasing by 7.7% to BWP 1.974 million, driven by the addition of nine new stores, inflationary increases in Zimbabwe and Zambia, and volume growth in Namibia and Zambia”.
However, the financials noted that this growth was partially offset by a weak Zimbabwean Dollar, resulting in a 48.3% decline in Zimbabwe’s Pula sales.
In terms of gross profit, Choppies managed to achieve a 4.0% increase, reaching BWP1.359 million despite the challenging economic environment.
Marginal growth in gross profit rates was seen in Botswana and Namibia, while Zambia and Zimbabwe experienced declines in profit rates.
Zambia proved to be a notable success story for Choppies, “with sales surging by an impressive 44.7%, accompanied by a robust like-for-like sales growth of 33.3%”.
The company opened three new stores during the year, and although EBITDA declined by 26.4% due to foreign exchange losses on the lease liability, adjusted EBITDA grew by 27.1%.
Adjusted EBIT only experienced a slight decline of 2.6%. Choppies expressed confidence in Zambia’s potential to generate taxable profits in the near future.
In Botswana, “sales growth was supported by volume increases from new stores and double-digit price inflation, resulting in sales of BWP4.459 million, up from BWP4.209 million in the previous year”.
The financials come as Choppies has announced plans to open 35 additional stores in Namibia over the next five years, expanding its current chain of 15 local stores.
Choppies operates in four countries and has a network of 161 stores and nine distribution centres.
