Choppies� African offensive: Seven countries and still counting
Friday, October 13, 2017
Ottapathu says Choppies will enter Namibia before year-end
BusinessWeek: Your recent results show continued growth in revenues and footfall but net profits seem to continue weakening. Is this part of the plan?
Ottapathu: The continued rise in revenues and footfall is a clear indication of our ability to operate in the African market where we have managed to establish footprint in seven countries in a short space of time. The group operates predominantly in commodity dependent markets, and despite the difficult trading circumstances, Choppies performed well in the last financial year. Balanced growth in revenue and gross profit was achieved. Our revenues for the year ended June 2017 jumped 20% to almost P9 billion and gross profit rose 30%. Net profit, however, dipped 9.5% to P77 million, but this is merely the drag-on effect of our aggressive expansion drive.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...