Read the Simbisa Brands Limited 2018 annual report
Simbisa Brands Limited, listed on the Zimbabwe Stock Exchange under the share code SIM, is a leading fast-food restaurant operator in Zimbabwe. The company owns, operates franchises including Pizza Inn, Chicken Inn, Nandos and Steers of South Africa.
Simbisa Brands Limited had revenue increases by 33% for their latest business year ended. A figure of US$154.1m recorded the previous year increased to US$204.7m. Operating profit went 60% up marking a US$10.6m increase in figures as the company’s profit before tax went from US$9,5m by a massive 113% as basic earnings per share went over to 2.55 US cents with US$4 million in dividends being availed. Technological advancement is one of the strategies being adopted to intensify services as the company aims to penetrate new markets and foster established market’s presence.
The following is an excerpt from the Chairman’s statement:
The Group’s revenue for the financial year under review increased by 33% to US$204,7m (FY2017: US$154,1m) driven mainly by organic growth in Zimbabwe and Kenya.
Operating profit was up 60% to US$28,1m (FY2017: US$17,5m).Profit before tax increased by 113% to US$20,1m (FY2017: US$9,5m).
Accordingly, profit attributable to the owners of Simbisa increased by 107% to US$14,2m (FY2017: US$6,8m) and basic earnings per share was up by 107% at 2.55 US cents (FY2017: 1.23 US cents).
Cash generated from operations after changes in working capital increased to US$28,3m (FY2017: US$21,1m). Total cash utilised in investing activities of US$11,1m (FY2017: US$10,4m) was incurred, mainly for expansion initiatives in Kenya and Zimbabwe.
The Group’s gearing declined by US$1,5m during the period to close the year with a balance of US$16,8m.
A total amount of US$4,0m (FY2017:US$2,3m) was distributed to shareholders as cash dividends in the year under review.
Simbisa’s strategic intent is to be the leading QSR and casual dining operator in Sub Sahara Africa with profitable and sustainable food businesses in all of the markets in which we operate. Our key strategic objectives are to continue to grow the core QSR business in existing and new African markets, to develop and acquire brands in the QSR and casual dining segment and to enhance our service offering through technology development and by leveraging established infrastructure and supply chain investment.
Expanding into the casual dining food segment, which will appeal to a higher income demographic whilst improving Group margins, will be critical to achieve our strategic intent. Simbisa added several appealing new casual dining brands to its portfolio in the period under review, including RocoMamas and Ocean Basket in Zimbabwe. Simbisa will focus on the roll-out of casual dining brands in our existing markets as well as new markets in the short to medium term and we are continuously exploring opportunities to develop and acquire new brands and value propositions which are aligned with our strategy. I am optimistic that a stabilisation in the socio-political environment and the impending economic reform in the wake of elections in Kenya and Zimbabwe, will pave the way for continued growth and new opportunities in these two markets, where we are most developed, and that Simbisa will continue to make strides in growing its market share in the other regional markets.