Pan-African fast foods retailer, Simbisa Brands profit for the six months ending 31 December 2021 reached ZWL$2.239 billion in historical terms, 149 percent ahead of prior period of ZWL$ 898 million as a result of strong recovery in consumer demand.
The company has since declared an interim dividend of ZWL 134 cents per share from ZWL 53 cents per share last year.
The relaxation of COVID-19 restrictive measures ensured increased operating hours for the group in most of its operating countries in the region with the exception of Zimbabwe and Kenya whose restaurants traded -44% and -13% respectively, below the regular trading hours.
Group revenue reached ZW$ 15.949 billion from 7.624 billion previous period.
“With the easing of trading restrictions in our operating markets, trading capacity has scaled up and with that, customer counts have shown a recovery in 1H FY2022 versus prior year. Increased delivery contribution, which has also translated to firmer average spend, has further supported the increase in turnover versus prior year,” the group said in its Half Year financial results statement.
Despite reduced trading hours, customer counts in Zimbabwe grew 18 percent year on year on the back of ongoing promotions and value meal offerings as well as steady growth in footprint, deliveries, and collect orders.
Increased focus on the delivery segment continued to bear fruit, with the total number of deliveries increasing 62 percent.
Whilst Kenya’s trading hours were still 13 percent below full capacity other markets including Mauritius, Ghana and Zambia resumed operations at full capacity.
“Customer counts in the regional business increased 28% from prior year, while average spend increased 5% in USD-terms on the back of menu price increases, currency stabilisation and increased contribution from delivery channels,” the group said.
Simbisa has improved trading capacity in most markets and as a result customer footfall into the shops has made a marked recovery. The Group has now shifted from a defensive operating strategy to focus on growth.
Although there has been a recovery in customers visiting the shops, the Group is still placing much focus on the delivery business to grow delivery and collect order revenue channels.
“The focus in the region has been on the continued development and refinement of the Dial-a-Delivery mobile application in order to enhance the user experience and with the target of growing application-related customers and orders,” the company said.
