- Revenue grew by 1.1% to P5.421m
- Impact of the COVID-19 on revenue is estimated at P190m
- Choppies currently operates in Botswana, Zimbabwe, Zambia and Namibia
Harare – Choppies Enterprises Limited, a Botswana multinational grocery and general merchandise retailer headquartered in Gaborone, reported a 1.1% growth in revenue from continuing operations to P5.421 million during the full year ended 30 June 2020 comparable to P5.359 million in 2019.
In a statement accompanying the financials, the Group said, “This increase was inflation driven in Botswana and Zimbabwe against a backdrop of negative sales volumes in Botswana and Zimbabwe due to the impact of the Covid-19 pandemic.
“The impact of the COVID-19 pandemic on the Group’s continuing operations revenue is estimated at P190 million,” the Group added.
The retail group currently operates in Botswana, Zimbabwe, Zambia and Namibia.
The Group announced in August 2020 that it is exiting South Africa, Kenya, Tanzania and Mozambique having suffered running shortfalls that contributed to the P139 million loss for the half-year ended December 31, 2019.
It used to operate close to 125 outlets in southern Africa, 72 stores in Botswana and 35 in South Africa and had earlier indicated plans to increase branch network in Zimbabwe to 50.
During the period under review gross profit margins improved slightly to 23.1% (2019: 22.7%) following another good performance in the Botswana operations. Profit for the period increased by 1314% to P99 million from P7 million recorded in the same period last year.
Total assets reduced by P346.3 million from P2 187.1 to P1 840.8 million mainly as a result of the discontinued operations.
Equity Axis News