Harare – Fast foods operator, Simbisa Brands Limited’s Zimbabwe operations recorded a 23% rebound in customer counts to 2.7 million in the second quarter to 18 November 2019 from 2.2 million customers in the first quarter ended 30 September 2019 (Q1 FY2020).
In the trading update for the first quarter ended 30 September, the Group reported that volatility in the Zimbabwe economy characterised by among other reasons spiking inflation and foreign currency shortages resulted in gross loss in consumer disposable incomes, thus limiting their purchasing power.
However, the group seems to have recovered from this loss and has seen a rebound in customer purchasing activities which has seen improved customer counts during the quarter-to-date period.
Simbisa’s Chief Executive Basil Dioniso previously said the group was responding to the Zimbabwe market situation by introducing a range of value meals, increasing promotional and marketing activity and maintaining an optimal pricing strategy to maximise value to its customers whilst taking measures to preserve margins and this seems to have resulted in the bounce back of the company
Zimbabwe operations saw a 431% year-on-year growth in revenue in the period under review against the 249% year-on year recorded in the first quarter.
Regionally, the Group maintained its growth pattern characterized by an increase in customer counts as well as US Dollar average spend of 4% each compared to the prior period.
This resulted in US Dollar revenue growth of 8% against the prior year and as a result, year to date regional turnover for the period between 30 June 2019 and 18 November 2019 was 9% year-on-year.
Simbisa Brands currently has 459 QSR restaurant operations in nine African countries that include Zimbabwe, Kenya, Ghana and DRC and has plans to expand into other countries on the continent as well as opening more branches in Zimbabwe.
Equity Axis News