BULAWAYO,– Botswana-listed retail group, Choppies says revenue at its Zimbabwe operations grew by 17 percent in full year ended June 30 despite a sluggish economy underlined by chronic shortages of cash.
The growth in revenue was despite a three percent decline in sales over the period.
“Cash crisis in the economy is a primary matter of concern. However, the business continued to do well in spite of this,” said Choppies.
“Expansions in the country have been slowed down in response to the challenges being experienced.”
Earnings Before Income Tax Depreciation and Amortisation (EBITDA) from the Zimbabwe unit grew to $3,8 million (BWP39 million), from $780,000 (BWP 8 million) last year. It contributed 15,41 percent to the group’s $861 million (BWP8,852 billion).
Choppies, which has 32 outlets in Zimbabwe, also has operations in South Africa, Kenya, Tanzania and Zambia. Choppies has been on a regional expansion drive which has seen its footprint spreading into Mozambique this year.
By comparison Zimbabwe’s largest retail chain OK Zimbabwe reported EBITDA of $16,6 million while Meikles’ supermarket segment which consists of TM and Pick Pay came out to $23,8 million.
The southern African nation’s retail sector has remained resilient despite its sluggish economy and the explosion of informal commerce. – Source