Choppies Group, the market leading mass grocery retailer in the country has attributed high turnover on its results for the year ended December 2013 to strong organic growth and efficiencies.
The Botswana Stock Exchange (BSE) listed company said under the current circumstances its sales are particularly impressive in both Botswana and South Africa.
Choppies revenues went up by 25 percent, and gross profit also went up by 31 percent while operating profit grew by 26 percent.
The Group’s profits after tax grew up by 31 percent while the total current number of stores 104.
Its total current retail space is 150,656 square meters with a total employment crossed 10,000. Choppies saw a value addition of more than P 500 million for six months.
“We are certainly seeing a squeeze on the disposable income of the common man which reflected in the consumption patterns. Globally the volatile and erratic currency movements and mining strike in South Africa, liquidity crunch in Zimbabwe can be a possible risk,” said Choppies CEO Ram Ottappath.
On the domestic market, the Group opened 11 new stores including six Supa Save Stores in the six months ended 31 December 2013, retail space of 14,788 square meters were added.
Across the border in South Africa, Choppies opened five new stores in the six months ended 31 December 2013 and retail space of 10,690 square meters added.
After 31 December 2013, three more new stores were opened coming to a total current number of stores 24. The total current retail space is 47,878 square meters while the total number of employees 2,994.
“The biggest challenges were the labour unrest in South Africa. It did affect us to some extent. We are trying to be innovative to keep up the momentum,” said Ottappath.
He spoke about Zimbabwe commencing operations with 11 stores on 26 October, 2013 and he added one new store in December 2013 and another one in January 2014 making a total current retail space of 15,124 square meters and also a total number of employees 882.
“We will be innovative to improve the current market share in Botswana and continue to expand our base in South Africa and Zimbabwe. Also we want to expand further in South Africa, Zimbabwe and possibly other countries,” Choppies CEO stated.
He also noted that a dividend will only be declared and distributed after the finalisation of the financial statements for the year ended 30 June 2014.
Meanwhile, the market leading mass grocery retailer in the country has previously confirmed that it is working on a secondary listing at the Johannesburg Stock Exchange (JSE) as the retailer expands in the region. Also its secondary listing on the JSE is said to expose the group to a new universe of South African, regional and international investors whose investment mandate is limited to JSE-listed shares.