JSE-listed, Botswana-based grocery chain Choppies’
share price jumped 8.3% to R2.60 on Thursday morning after it released
its delayed interim results, showing 22% growth in both sales and net
profit.
Choppies grew revenue for the six months to end-December by 22% to
5.8-billion pula (about R7.3bn) and net profit by 22% to 68-million pula (about R85m) at R1.26 per pula.
The grocery chain said in a trading statement on February 26 that it expected to release its interim results on March 21. But then on March 23 it said its board had "instructed management to perform more detailed procedures on verification and valuation of inventory in conjunction with the new external auditor PricewaterhouseCoopers".
The group reported its home market in Botswana contributed 2.3-billion pula revenue, placing it only slightly ahead of SA which contributed 2.1-billion pula, while Zimbabwe contributed 870-million pula and "other regions", which include Zambia, contributed 468-million pula.
Choppies said that in SA "significant improvement in the North West stores resulted in like-for-like revenue growth of 43%. This growth has brought us to profitability in this region and we expect this trend to continue in the second half of the 2018 financial year."
It acquired a further eight stores in KwaZulu-Natal in November.
"Increased benefits of scale and other efficiencies will improve further as we expand our footprint in this region," the results statement said.
In Botswana, "despite the subdued economic environment in the country, we maintained our market share and continued to improve our efficiencies", Choppies said.
BDLIVE
Choppies grew revenue for the six months to end-December by 22% to
5.8-billion pula (about R7.3bn) and net profit by 22% to 68-million pula (about R85m) at R1.26 per pula.
The grocery chain said in a trading statement on February 26 that it expected to release its interim results on March 21. But then on March 23 it said its board had "instructed management to perform more detailed procedures on verification and valuation of inventory in conjunction with the new external auditor PricewaterhouseCoopers".
The group reported its home market in Botswana contributed 2.3-billion pula revenue, placing it only slightly ahead of SA which contributed 2.1-billion pula, while Zimbabwe contributed 870-million pula and "other regions", which include Zambia, contributed 468-million pula.
Choppies said that in SA "significant improvement in the North West stores resulted in like-for-like revenue growth of 43%. This growth has brought us to profitability in this region and we expect this trend to continue in the second half of the 2018 financial year."
It acquired a further eight stores in KwaZulu-Natal in November.
"Increased benefits of scale and other efficiencies will improve further as we expand our footprint in this region," the results statement said.
In Botswana, "despite the subdued economic environment in the country, we maintained our market share and continued to improve our efficiencies", Choppies said.
BDLIVE
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