HARARE – Choppies Enterprises Limited, the Botswana-based retail giant, has experienced mixed financial outcomes since exiting Zimbabwe in December 2024, reflecting both challenges and ongoing focus on core markets.
The company sold its Zimbabwe operations for US$260,000 after 12 years of presence, incurring a loss of about US$1 million due to persistent economic instability, high inflation, currency volatility, and foreign currency shortages in Zimbabwe.
This exit was driven by adverse market conditions that favored informal traders over formal retail, making the Zimbabwe segment a financial liability with diminishing returns and rising operational costs.
Following the Zimbabwe exit, Choppies reported steady retail sales growth in its core Botswana market for the year ended June 2025.
Group revenue from continuing operations grew by approximately 14.6%, with like-for-like retail sales up 8.6%, supported by improved gross profit margins in most segments except Liquorama, which faced heightened competition and illicit imports.
The company, however, highlighted rising expenses up 21.8%, including costs related to the Zimbabwe disposal, new store openings, inflation, and operational overheads.
Adjusted Earnings Before Interest and Taxes (EBIT) growth was 12.2%, yet overall profit after tax for the full year was projected to decline by 25% to 35%, partly due to one-off costs related to the Zimbabwe exit and increased operational costs elsewhere.
Despite profitability pressures, Choppies has maintained a strong presence in Botswana, which generates around 80% of the group’s EBITDA, and has continued to consolidate market share in southern Africa, including operations in South Africa, Zambia, and Namibia.
The group is cautious about an “increasingly challenging economic environment” but sees potential for stable growth focused on its core operations.
The company stated: “The Group expects continued resilience in core markets despite external challenges, including regional currency volatility, inflationary pressures and global uncertainty. Strategic priorities remain:
“Consolidating profitability in Botswana, Namibia, and Zambia, completing the turnaround of hardware and Liquorama, maintaining financial discipline and covenant headroom and advancing environmental, social, and governance (ESG) initiatives.”
Uttum Corea, the company Chairman noted: “The Board remains confident that Choppies is positioned for sustainable growth and improved shareholders returns.”
The company is listed on the Botswana Stock Exchange and Johannesburg Stock Exchange.
