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REGIONAL retail group Choppies says its Zimbabwean operations have returned to profitability despite the difficult economic conditions that have slowed down consumer spending.

The Botswana-headquartered grocer will release its half year financial results ended December 31 on March 14.

Chief executive officer Ramachandran Ottapathu said in a statement ahead of the results that Zimbabwe was among the operations that have returned to profitability.

“Group results were negatively affected by trading losses in new regions namely Zambia, Kenya and Tanzania. Despite difficult trading conditions in South Africa, focused attention resulted in an improvement with losses narrowing compared to 2016. The Zimbabwean segment, despite very difficult economic conditions, returned to profit. Botswana results were affected by rand strengthening against Botswana pula,” he said.

Ottapathu said the group’s EPS is expected to show a reduction of 40 percent – 50 percent from the EPS reported for the half year ended 31 December 2015.

Choppies entered the local market by buying Bulawayo-based businessman Raj Modi’s investment company, for $21.2 million and taking over 11 of the outlets that were operating under the Aaro Mart and Spar franchises in Bulawayo in 2013.

The retail giant has since grown the number of its outlets in the country to 32.

Choppies is one of the fast growing retail businesses in Zimbabwe. The firm has said it looks forward to a robust business in 2017 in view of improved consumer spending on the back of use of plastic money and introduction of bond notes, managing director Mr Siqokoqela Mphoko said recently.

The Mphoko family are key shareholders in the Botswana and Johannesburg listed retail chain, which boasts of a wide regional business network.

Mr Mphoko had said the combination of bond notes, which were introduced in November last year and use of plastic money, has transformed consumer spending and improved the retail business despite cash shortages that dominated the whole of last year.

Headquartered in Bulawayo, Choppies Zimbabwe has been on an aggressive investment drive since its entry into the local market four years ago. The firm has as a result created 2 000-plus jobs and become a market for dozens of local industry and agricultural suppliers.

Mr Mphoko is on record as saying his firm was planning to open up to 50 branches countrywide and aiming for a turnover of $350 million. He said Choppies was confident of the investment climate in Zimbabwe and would continue working with the Government in empowering locals and creating jobs.— The Source/Business Reporter