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Senior Business Reporter

SIMBISA Brands registered a 24 percent revenue increase with 31 percent generated from Zimbabwe operations and 12 percent in the region.

The firm said growth in Zimbabwe is largely from an increase in customer counts of 38,4 percent.

The fast foods restaurant operator owns stores that include Chicken Inn, Creamy Inn, Baker’s Inn, Nando’s, Fish Inn and Baker’s Inn has a footprint across Africa in Ghana, Kenya, Namibia, Zambia and Mauritius.

In a statement accompanying unaudited interim financial results for the six months ended 31 December 2022, the company said in the region average spend increased by 3,8 percent while customer counts also grew by 8,3 percent.

“The Group recorded an increase in interest income largely from short-term financial assets. Profit attributable to shareholders and headline earnings increased by 38 percent and 22 percent respectively,” reads part of the report.

Cash generated from operations remained strong at 113 percent of operating profit.

According to the results, the Group spent US$9,7 million on capital expansion and maintenance.

In the period under review, the Group’s debt position increased from US$ 7,6 million to US$ 16,5 million to fund strategic investments in financial assets.

However, the firm is upbeat on prospects for the current financial year ending 30 June 2023.

“There are exciting prospects for the Group for the remaining six months  of the current financial year ending 30 June 2023.

“The Group expects to open a further 49 stores to close the financial year with 680 stores. The Board will continue to invest any additional free cash generated in strategic assets to achieve the Group’s overall target growth trajectory.”

The firm noted that it remains focused on diversifying revenue streams by growing its market share in the casual dining sector and increasing the revenue contribution from deliveries.

Simbisa continues to grow revenue streams from the delivery segment by scaling operating capacity, enhancing fleet productivity and efficiencies, and improving the overall customer experience.

Going forward, it expects sustained improvement in customer counts in the financial year ahead through implementing the strategies mentioned earlier to drive revenue growth through new store openings and diversification of revenue streams.

It said with a substantial investment pipeline, 48 new counters set to open in the second half of the FY2023 and a further 103 sites identified for the 2024 financial year, will drive growth and unlock shareholder value.

“The primary growth markets in the short to medium term will be Kenya and Zimbabwe. However, the Group remains vigilant of new growth opportunities in existing and potential new markets and continues exploring business development options.”