Simbisa Brands Limited Revenue 8pc Up

Zimbabwe Stock Exchange listed company Simbisa Brands Limited revenue for the year ended June 2017 increased by 8% to $158.9 million compared to $146.6 million recorded in 2016 and this was driven by organic growth in Zimbabwe and Kenya and 6 months revenue contribution from additional stores rolled out in Mauritius.

According to the group chairman, Bexley Chinake, operating profit was 23% up to $18.3 million compared to $14.9 million that was recorded in 2016.

Profit before tax increased by 41% to $10.1 million compared to $7.1 million recorded during the same period last year.

“Profit before tax increased by 41% to $10.1 million as compared to $7.1 million recorded during the same period last year.

“Accordingly profit attributable to the owners of Simbisa increased by 36% to $6.8 million as compared to $5.0 million recorded in 2016 and basic earnings per share was higher by 35% at 1.23 cents as compared to 0.91 cents in 2016.

“Cash generated from operations after changes in working capital increased to $21.0 million,of the amount the group invested $10.6 million mainly in expansion of activities in Kenya,Zimbabwe and Mauritius which is lower than$17.7 million we spent last year,” said Chinake.

He added that the reduction in capital expenditure was a result of changes in the capital allocation strategy which takes into account the company focus on high return investments.

“The reduction in capital expenditure is a result of changes in the capital allocation strategy which takes into account our focus on high return investments and our objective to grow in foot print.

“Net cash outflow from financing activities was $3.8 million for the year under review, the group’s total borrowings remained relatively flat with a marginal reduction of $0.5 million.

“The group spent $1.5 million on clearing outstanding amounts payable to non controlling interests arising from transactions concluded in 2016.

“An amount of $1.9 million was distributed to share holders as cash dividends while $ 0.5 million was paid to non controlling interests,”he said.

Meanwhile the board declared a dividend of 0.23 cents per share.

 

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