Simbisa Brands after-tax profit up 5pct

Simbisa Brands after-tax profit up 5pct

HARARE, March 23 (The Source) – Simbisa Brands on Thursday reported a 4,7 percent increase in after-tax profit to $4.7 million in the half year to December on the back of increased sales.

Simbisa is a quick service restaurant business spun off from Innscor in November 2015.

Group revenue increased by 3 percent to $79,1 million from $77 million in the previous year. Operating profit rose by 3 percent from $10,2 million in the same period previous year to $10,4 million.

Earnings per share improved from 0,84 cents to 0,86 cents per share.

Cash generated from the group’s operations amounted to $9,9 million from $10,4 million recorded in the same period previous year and the group invested $4,3 million for the expansion of its operations in Kenya, Zimbabwe and Mauritius.

The Zimbabwe operations’ revenue for the six months to December 31 declined by 1 percent from $49,5 million in the comparable period previous year to $48,9 million despite a 7 percent increase in customer counts on the back of a drop in average spend.

In Zimbabwe four new counters were opened, bringing the total store count to 193 counters across the country. Simbisa has 205 counters outside the country, with a presence in Kenya, Ghana, Mauritius, DRC and Zambia.

On regional operations, the combined revenue increased by 10 percent on the Kenyan operation’s performance.

“The combined revenue for the regional operations (Kenya, Zambia, Ghana,DRC and Mauritius) increased by 10 percent to $30,2 million (2015:$27,4 million) driven by a gratifying performance from our largest market, Kenya, and the contribution of our expansion activities in Mauritius”, chair Addington Chinake said.

Chinake said operating profit  from regional operations segment increased by 15 percent from $1,8 million in the comparable period in the prior year to $2 million despite mixed results across the markets. Chinake said while the group experienced gains in Kenya, the operating losses experienced in the set-up phase of Mauritius operation offsetted the gains.

Simbisa group opened 8 new stores in Kenya in the period under review to bring the total store count to 124. Chinake said the group is impressed with the growth in Kenya which contributed 26 percent to group revenue.

Simbisa group operates 20 counters and 37 counters in Ghana and Zambia, respectively, another 14 in the DRC and 10 in Mauritius.

Total assets increased by 10 percent from $73,6 million recorded in the same period in the prior year to $67,1 million.

The group plans to increase its footprint both in Zimbabwe and the region as it pursues growth in size, revenue and profitability in its largest regional market, Kenya.

The group declared a dividend of 0,23 cents per share in the interim.