Choppies Enterprises Limited (CEL), the Botswana-grown supermarket chain, has posted strong results for the year to June 2020 from its continuing southern African businesses in Botswana, Zambia, Namibia and Zimbabwe.
Despite COVID-19, which is estimated to have cost CEL BWP190m in revenue, CEL managed to increase its revenue by 1% to BWP5,421 million; increased gross profit by 3% to BWP1,253 million and raised its gross margin from 22,7% to 23,1%.
This comes off the back of a period of consolidation and restructure, improved corporate governance and the withdrawal from non-performing operations in markets including South Africa, Kenya, Tanzania, and Mozambique.
Choppies Chief Executive, Ram Ottapathu, says: “These are solid results. Our continuing businesses are resilient. We have traded strongly following the exit from certain markets and the impact of Covid19 and hyperinflation in Zimbabwe.
“We are particularly pleased by the strong growth in EBITDA and our ability to consolidate our continuing business in Botswana, Zambia, Namibia and Zimbabwe.”
The bottom line was adversely affected by the discontinuation/disposal of its operations in South Africa, Kenya, Tanzania, and Mozambique; and by the impact of IFRS 16 – Leases. While the group showed a total loss of BWP371 million, this was down 14% on the BWP429 million loss in 2019.