Fast food outlet, Simbisa Zambia has expanded operations and now boost of 32 counters in that country, the company has announced.
Simbisa brands limited group CE Basil Dionisio in a statement accompanying the group financial results for the year ended June 30, 2021 said the group’s Zambian business opened 2 new counters during the period under review.
The group has foot prints in Zimbabwe, Ghana, Namibia, Kenya and Mauritius.
“Simbisa Zambia opened 2 new counters and a bread and confectionaries factory in FY2021 to close the financial year with 32 counters in operation. The bread factory is expected to significantly improve revenue and profitability in the Bakers Inn brand,” Dionisio said.
Dionisio said sustained exchange rate weakness in the Zambian Kwacha, which depreciated 25% against the US Dollar between 30 June 2020 and 30 June 2021, continues to put pressure on the Zambian business through depressed consumer disposable incomes and increased cost of imported raw materials and key costs.
“Covid-19 trading restrictions led to 19% fewer trading hours in the financial year under review, when compared to normal trading hours when operating at full capacity,” he said,
Dionisio said it was commendable that amidst a difficult operating environment, the Zambian business achieved a 41% increase in Local Currency Revenue in FY2021 versus prior year, driven by a 28% year-on-year increase in customer counts and a 9% growth in Average Spend.
The improvement in customer counts was attributable to successful marketing campaigns and brand-specific promotions.
“Exchange rate pressures dampened top-line growth in US Dollar terms and the Business registered a 3% decrease in revenue in real terms, still a significant improvement from the 27% year-on-year decrease which was recorded in 1H FY2021.Despite exchange rate pressures on cost of sales and operating costs, rigorous cost containment measures implemented in the financial year under review allowed the Business to improve operating profit margins and return the business to profitability, from a loss-making position recorded in the prior year period,” he said.
The group plans to open 92 new outlets across its market in 2022 financial year.
“As we see our operating markets adjusting to the ‘new normal’ trading environment, with an easing in restrictions and a recovery in trading capacity, the intention is to accelerate growth in our footprint whilst still ensuring strong organic growth and recovery in our existing Business. There are 92 new store roll-outs in the pipeline for FY2022 which include 8 new Chicken Inn Drive Through , 4 casual dining brands and 4 of the new food trailer or container concepts,” Dionisio said.