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Bulawayo Chicken Inn Drive through

Oliver Kazunga Senior Business Reporter
INNSCOR Africa Limited’s division, Simbisa Brands plans to roll out additional Chicken Inn drive through Quick Service Restaurants (QSRs) throughout Zimbabwe as part of its expansion project buoyed by a $2.6 million after tax profit in its maiden financials.

The division, which was unbundled from Innscor on October 1, 2015 and listed separately on the Zimbabwe Stock Exchange, recently launched its first two drive through restaurants in Bulawayo and Harare.

“Simbisa Brands will strategically roll out Chicken Inn drive through QSRs throughout Zimbabwe . . . we’ve since opened two new drive throughs in Harare and Bulawayo to date, and we’re excited with this new convenient means to satisfy our customers,” Simbisa chairman Addington Chinake said.

“The initial results (financial) are encouraging and are expected to contribute to the company’s future earnings.”

The company’s maiden statement accompanying unaudited financial results for the period ended December 31, 2015, also indicates the outfit posted a $2.6 million profit after tax while basic earnings per share stood at $0,46.

Basic earnings per share refer to a rough measurement of the amount of a company’s profit that can be allocated to one share of its stock.

Chinake said the board has declared an interim dividend of $0,12 per share, which would be paid on or by April 29, 2016 to shareholders in the books of the company as at the close of business on the 8th next month.

Since the unbundling of Simbisa Brands, he said, the business has already started benefiting through the streamlining of operations to achieve greater efficiencies.

“Being a stand-alone entity has allowed us to focus more on our operating units. Our brands in Zimbabwe have maintained their distinctive advantage of having the widest store coverage and offering compelling value.

“Year-on-year customer counts have increased, although average spend has declined due to downward pressure on consumer purchasing power.

“Despite lower spend we’ve managed to increase our revenue as compared to the same period last year. Twelve new counters have been opened in Gweru, Masvingo, Kwekwe, Bindura and Harare,” he said.

On the regional front, Chinake said the business continues to feel the effects of weakening domestic currencies relative to the United States dollar.

In Kenya, the QSRs experienced a depreciation of 14 percent of the Kenyan Shilling to the dollar against the same period last year.

“Zambia experienced currency devaluation of 86,49 percent in dollar compared to the same period last year, owing to a dip in global commodity prices for copper resulting in depressed consumer spending,” he added.

He said during the period under review they entered into a new market, Mauritius opening 10 counters in that country.

In the Democratic Republic of Congo, the company’s growth was slowing down due to depressed commodity prices.

“We’re starting to see this filter through to the consumer whose income is experiencing downward pressure. We’re nonetheless exploring expansion opportunities in that market,” said Chinake.