Choppies profit breach P1bn mark
Isaac Pinielo | Friday September 19, 2014 15:26
The group ended the financial year on a high note, with a turnover of P5 billion for the period, while the group’s retail space increased by 46% to 155,955 square metres.
An economic analyst with Motswedi Securities, Garry Juma, has lauded the company board and management for the impressive financial results.
He noted that these are exciting results considering the tough economic environment.
“That’s a very strong performance considering that the company managed to increase turnover by 22% last year and has maintained this rate of growth for the past three years,” he said. Juma also indicated that he envisages the company growing from strength to strength in the next five years. He however regretted that the company did not perform as well in South Africa.
This week the company reported that the strike in the platinum mining sector had affected the performance of South African stores in the second half of the year, resulting in the registered loss for this segment. It also reported that out of the 26 stores operated, 16 are in strike-affected areas, adding that revenue suffered by up to 40 percent in these stores.
Meanwhile, Choppies Chief Executive Officer (CEO), Ramachandran Ottappath, stated that performance has improved in South Africa since the end of the strike.
“We remain confident that the investment in our infrastructure in South Africa will support our long-term growth strategy in the country. South Africa is the biggest economy in the continent and we hope that the strike will not recur,” he said.
Ottappath also said that the performance of their Zimbabwe operations had been encouraging, adding that they intend to expand their presence in the country. The group recently opened a new distribution centre in Bulawayo, Zimbabwe.
“We are planning to open six more stores in South Africa, four in Botswana, and five in Zimbabwe by the end of December 2014,” he revealed.
The CEO reiterated that they would continue to evaluate expansion opportunities in existing and new markets. He added that they are at advanced stages of entry into new markets in southern and east Africa.
Having listed on the Botswana Stock Exchange (BSE) in January 2012, Choppies’ share price has since trebled, in what has been rated the most successful new listing outside the banking sector in the exchange’s history. The group has also expressed interest in listing on the Johannesburg Stock Exchange (JSE).