Choppies Enterprises Limited Reports Strong Growth in Unaudited Financial Results for HY2023

  • Revenue and retail sales surged by 21%, reaching Pula 4,288 million.
  • Operating profit (EBIT) jumped 28% to Pula 181 million, driven by new stores and acquisitions.
  • Interim dividend of 1.6 thebe per share declared by the Board.
Published by
Lethabo Ntsoane

Choppies Enterprises Limited has announced its unaudited financial results for the six months ended 31 December 2023 (“HY2023”). Despite facing challenges in its Zimbabwe segment, the Group has shown impressive growth driven by strategic acquisitions and expansion efforts.

Financial Performance:

The Group’s revenue surged by 21% to Pula 4,288 million compared to Pula 3,535 million in the same period in 2022. Retail sales mirrored this growth, increasing by 21% to Pula 4,258 million. Gross profit rose by 21% to Pula 893 million, while operating profit (EBIT) saw a notable increase of 28%, reaching Pula 181 million. The profit for the period experienced a substantial growth of 41%, amounting to Pula 100 million.

MetricHY2023HY2022Change
RevenuePula 4,288 MPula 3,535 M+21%
Retail SalesPula 4,258 MPula 3,511 M+21%
Gross ProfitPula 893 MPula 736 M+21%
Operating Profit (EBIT)Pula 181 MPula 141 M+28%
Profit for the PeriodPula 100 MPula 71 M+41%

Financial Highlights:

The Group’s growth was primarily fueled by strategic acquisitions and expansion efforts. Despite challenges in the Zimbabwe segment, including negative volume growth, the Group’s overall performance remained strong. Key financial highlights include:

  • Sales volume growth of 8% in Choppies segments, with only Zimbabwe experiencing negative volume growth.
  • Gross profit margin remained stable at 21%, despite the dilutionary impact of the Kamoso acquisition.
  • Expenses increased by 19.9%, attributed to new stores and high inflation.
  • Operating profit (EBIT) increased by 28.4%, while Adjusted EBIT increased by 37.9%.
  • Net finance costs were higher due to the inclusion of finance costs relating to Kamoso.
  • Effective tax rate was lower than the standard rate, mainly due to exemptions and deferred tax adjustments.

Dividend Declaration:

In line with its dividend policy, the Board of Choppies Enterprises Limited has declared an interim dividend of 1.6 thebe per ordinary share, payable to shareholders on or before Tuesday, 16 April 2024.

Outlook:

Despite challenges in certain segments, Choppies Enterprises Limited remains optimistic about its future prospects. The Group aims to maintain its dividend policy and continue its strategic growth initiatives.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo