Prince Sunduzani, Business Reporter
ZIMBABWE Stock Exchange-listed quick service operator, Simbisa Brands’ revenue grew by 30 percent from $76.5 million to $99.3 million in the half year ended 31 December 2017.
The group’s financial results for the period show profit before tax grew by 70 percent from $6.6 million in the previous year to $11.1 million in the period under review. Operating profit was up by 47 percent to $15.1million compared to $10.3m in the same period in 2016.
Chairman, Mr Addington Chinake, attributed the improved performance to positive growth in Zimbabwe and Kenya operations. “Profit before tax increased by 70 percent to $11.1 million (2016:$6.6m). Accordingly profit attributed to the owners of Simbisa increased by 71 percent to $8.1million (2016:$4.8m) and basic earnings per share were up by 78 percent at 1.46 US cents (2016:0.82 cents),” he said.
Mr Chinake said the group invested over $3 million in Zimbabwe and Kenya expansion as these were considered high return markets. He said financial performance in Zimbabwe was impressive, as the group doubled its market share and improved profitability in the country. Revenue in the country increased by 39 percent while operating profit before depreciation and amortisation stood at $11.9 million, representing a 43 percent increase compared to last year.
“Cash generated from operations after changes in working capital increased to $16.3m. In line with the group’s capital allocation strategy, which focuses on high return investments, $3.2 million of the cash generated from operations was invested in expansion activities mainly in Zimbabwe and Kenya,” he said.
Mr Chinake added that the group expects challenging trading conditions in Zimbabwe but is optimistic about the country’s future. Last month, Simbisa also announced that it was seeking regulatory approval for secondary listing on the London Stock Exchange, the Alternative Investment Market (AIM), as part of its capital raising initiative. Simbisa Brands is a subsidiary wholly-owned by a giant Innscor Africa Group.