Harare – Organic growth in Zimbabwe and Kenya saw Quick service restaurant (QSR) group, Simbisa Brands Limited posting a revenue growth of 33 percent to $204.7 million for the year ended June 30, 2018 compared to $154.1 million the prior year.

The Group said during the period under review it continued to achieve sustained organic growth across its portfolio of brands whilst simultaneously re-assessing underperforming counters and brands in order to focus efforts on markets and counters which will deliver the highest returns on investments to shareholders.

Simbisa said it opened 13 new counters in prime site locations and closed 29 counters, to end the period with 413 counters.

The Group said as reported at half year, due to continued macro-economic challenges and the rising financial and operation risk of operating in the DRC, the Group disposed of its interest in the business and the former partner now operates the brands under a franchise arrangement in that market.

Simbisa said the Group achieved double digit growth in revenue for the period, driven by increased customer counts across all markets and improved average spend largely due to a stabilization in currency exchange rates against the US dollar in the regional markets.

“Simbisa served over 56 million customers in FY2018 compared to 52.5 million in FY2017, a record high in our 31 year trading history. Thus, the average customers per counter increased from 122 448 in FY2017 to 135 737 in FY2018, a 10 percent increase year on year.”

It said the 2018 financial year also marked a significant a significant increase in profitability with net income for the year more than doubling that achieved in the prior year.

Simbisa said this is attributable to higher revenue streams and improved operating efficiencies.

In the period under review, operating profit was up 60 percent to $28.1 million compared to $17.5 million in FY2017.

Profit before tax increased by 113 percent to $20.1 million compared to $9.5 million in the prior year.

Accordingly, profit attributable to the owners of Simbisa increased by 107 percent to $14.2 million compared $6.8 million and basic earnings per share was up by 107 percent at 2.55 US cents compared to 1.23 US cents last year.

Cash generated from operations after changes in working capital increased to $28.3 million compared to $21.1 million in 2017.

During the period under review, total cash utilised in investing activities of $11.1 million to compared $10.4 million last year was incurred, mainly for expansion activities in Kenya and Zimbabwe.

The Group’s gearing declined by $1.5 million during the period to close the year with a balance of $16.8 million and a total amount of $4.0 million compared to $2.3 in FY2017 was distributed to shareholders as cash dividends in the year under review.

Simbisa Brands Limited is a public company that owns, operates and franchises Intellectual Property Rights of a basket of Quick Service Restaurant brands such as Chicken Inn, Nandos, Creamy Inn and Pizza Inn.

The company currently operates restaurants in 11 countries across Africa with future ambitions of further expansion across the region.

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