Key Factors
- Simbisa’s income grew 7% to $157.5 million, pushed by increased spending, regardless of decrease buyer site visitors throughout key markets.
- Headline earnings dropped 10.7% to $8.73 million as rising prices in Zimbabwe and Kenya pressured margins.
- The corporate expanded in Kenya, including 4 shops, whereas sustaining a $0.0062 dividend per share, backed by a 39% money movement enhance.
Simbisa Manufacturers, Zimbabwe’s largest quick-service restaurant operator led by Zimbabwean enterprise chief Addington Chinake, posted combined outcomes for the primary half of its 2025 fiscal 12 months. Whereas gross sales had been up, rising prices in its key markets put strain on profitability. The corporate confronted financial challenges that weighed on its backside line, whilst income continued to develop.
In its newest monetary report, Simbisa recorded a 7 % enhance in income to $157.5 million, up from $146.75 million in the identical interval final 12 months. Development was pushed by increased common spending per buyer, significantly in Kenya, however total buyer site visitors declined throughout a number of areas. On the identical time, headline earnings fell 10.7 % to $8.73 million, weighed down by rising operational prices, new taxes in Kenya, and electrical energy tariff hikes in Zimbabwe.
Kenya and Eswatini: A combined efficiency
In Kenya, income grew 16 %, fueled by a 26 % enhance in common buyer spending. Nonetheless, complete buyer visits declined 8 %, reflecting the affect of latest taxation insurance policies and financial pressures. To counter this, Simbisa expanded its footprint within the nation, including 4 new retailers, bringing its complete to 255 shops.
Eswatini noticed a unique development. Income dropped 2 %, as a ten % decline in buyer site visitors overshadowed a 9 % rise in common spending. Whereas revenue margins held regular, weaker demand affected total gross sales. In response, Simbisa plans to refurbish and modernize its Eswatini shops within the second half of the 12 months to draw extra prospects.
Sustaining dividends regardless of price pressures
In Zimbabwe, the corporate adjusted its pricing technique, reducing costs to spice up gross sales whereas accepting thinner margins to maintain prospects engaged.
Regardless of inflationary pressures and weaker shopper spending, Simbisa’s money movement surged 39 % to $29.35 million, enabling the corporate to keep up its interim dividend at $0.0062 per share, payable on Mar. 20, 2025.
The corporate additionally accepted a $174,277 payout for its Worker Share Belief, reaffirming its dedication to employees welfare and shareholder returns.
Growth plans to drive progress
Simbisa is pushing ahead with its enlargement technique, significantly in East Africa, the place demand for quick-service eating places stays robust. As of Dec. 31, 2024, the corporate operated 611 retailers, including 42 new shops over the previous 12 months.
In Zimbabwe, Simbisa runs 332 shops, together with 103 Hen Inn, 65 Pizza Inn, and 67 Bakers Inn retailers. Inflation and rising energy prices have elevated bills, however the firm stays financially stable, with complete belongings up 5.4 % to $197.86 million and fairness rising 7.2 % to $93.18 million.
Wanting forward, Simbisa plans to renovate and improve shops in H2 2025, aiming to reinforce buyer expertise, construct model loyalty, and maintain progress in an more and more difficult financial atmosphere.
