Choppies rakes in P1bn gross profit

SHARE   |   Sunday, 21 September 2014   |   By Kabelo Adamson

 Choppies Group, a retail giant by market value and share, has registered a gross profit of over P1 Billion whereas the turnover also crossed the P5 billion mark.

The group’s half year financial results for the period ending on the 30th of June show that the group performance is not showing signs of going back.

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Choppies’ core business currently remains in Botswana where it is also listed on the Botswana Stock Exchange (BSE).

Meanwhile in South Africa, the platinum mining sector strike - according to the commentary statement on the financial results - affected the performance resulting in a loss. Choppies operates 26 stores in South Africa in which 16 fall under the strike affected areas resulting in revenue suffering by up to 40 percent.

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Since the strike ended, Group Chief Executive Officer, Ramachandran Ottapathu, expressed confidence that the investment in infrastructure in South Africa will support their long term growth strategy in South Africa.

In Zimbabwe, where the chain retail supermarket operates 13 stores with five new ones planned to be opened before end of this year, the group CEO said performance has been highly encouraging and they intend to expand footprints in Zimbabwe.

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During the current financial period under review, Choppies opened a new distribution centre in Bulawayo. The group’s impressive performance has been supported by opening of new stores during the period.

Some 13 stores were opened in Botswana (including six Supa Save stores), 10 opened in South Africa while 10 more were acquired in Zimbabwe and post-acquisition three more were opened.

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Since its initial listing on BSE about two years ago, Choppies used that opportunity to grow its portfolio and today its market value stands above P4.9 billion. 

Choppies listed on the BSE in January 2012 with an Initial Public Offering (IPO) of 1.2 billion shares listed at an offer price of P1.15 per share raising P350 million on both IPO and private placement. The IPO was said at the time to be the largest in the history of BSE. Since then the share price has increased to remain at an average of 420 Thebe. Choppies has declared a gross final dividend of 4.5 Thebe in relation to the period under review.



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