In a cautionary announcement to the Botswana Stock Exchange (BSE) , the retailer said it expects profit after tax from total operations to decline by between four percent and 14%, while profit from continuing operations is projected to fall more sharply, ranging between 28% and 38%. The trading update, issued in line with both BSE and JSE Limited listing requirements, signals a notable deterioration in profitability despite continued revenue growth across the group’s operations. “Group profitability was impacted by Botswana diamond-market slump reducing consumer liquidity, devaluation of the pula to combat economic strain.
Government austerity measures constraining spending, inflationary cost base, and new stores not yet at maturity curve,” said the grocer headed by Ramachandran Ottapathu. The retailer pointed to a convergence of domestic and regional pressures, with Botswana’s macroeconomic slowdown feeding directly into reduced consumer spending power. The weakening pula has further pushed up input costs, while government fiscal tightening has dampened overall liquidity in the economy. Choppies also highlighted operational pressures within its regional footprint. In Namibia, government-subsidised commodities have squeezed margins, while in Zambia, deflation on key food lines driven by a strengthening kwacha has weighed on pricing power. Across markets, intensified promotional activity in a constrained consumer environment has further eroded margins. Despite the profit warning, the group maintained that its top-line performance remains resilient.
