HARARE – Despite economic uncertainty in key markets, Simbisa Brands has delivered resilient performance, with its Kenyan operations posting a 16% revenue growth in USD terms for the six-month period.
The Victoria Falls Stock Exchange listed company quick-service restaurant operator has released its half-year financial results, showcasing a resilient performance amidst economic uncertainty.
The growth was driven by a 26% increase in real USD average spend, despite an 8% decline in customer count. The company added a net total of four counters in Kenya between December 31, 2023, and December 31, 2024, bringing the total to 255 operating counters.
“The lingering socio-economic unrest, continuing from the previous financial year, coupled with newly implemented tax measures, continued to weigh on consumer spending power and negatively impact operational costs.
“Nonetheless, the Group remains committed to its customer-centric strategy, with store refurbishments and upgrades planned for the second half of the financial year, to enhance customer experience and reinforce our competitive positioning,” the company stated.
In Zimbabwe, the company’s largest market, revenue grew by 4% year-on-year, driven by a 7% increase in customer count. However, average spend declined by 3% due to the company’s strategic decision to lower prices and cushion customers from shrinking disposable incomes.
In Eswatini, revenue declined by 2% year-on-year in USD terms, with a 10% drop in customer count partially offset by a 9% increase in real average spend.
Group-wide, Simbisa Brands reported a 7% increase in turnover and a 2% growth in operating profit. The company also generated strong free cash flow, with cash from operations surging by 39% to USD 29.4 million.
The company’s board has declared an interim dividend of 0.62 US cents per share, payable on or about March 20, 2025.
Looking ahead, Simbisa Brands plans to expand its store network, scale up delivery services, and enhance new product development. The company also aims to restructure its property investments and strengthen supply chain efficiencies.
“Simbisa Brands remains committed to sustainability-driven operations, ensuring business decisions align with the needs of both current and future generations. Operational efficiency and food waste reduction remain core priorities within our strategic framework.
“Our real-time customer feedback platform continues to drive improvements in service delivery and stakeholder engagement.
“Our community development investments align with the United Nations Sustainable Development Goals (SDGs) prioritised by the Board relating to water and sanitation, education and food security.
“During the period, the Group significantly contributed to initiatives supporting community resilience and development in all its key operational regions,” the company added.
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