Choppies, the listed chain giant, defied high inflationary environment as its half year results showed it managed to grow its topline in a tough trading environment.
The retailer, which bosses the Mass Grocery Retail industry, saw its revenues increase by 33 percent on the prior year, according to interim financial results for the six month ended 31, December 2011.
Revenues for the period stood at P1.62 billion suggesting the full year will be better than P2.44 billion for the audited results of year ended 30, June, 2011.
Choppies admitted: “Where necessary, comparative information has been reclassified to reflect current period presentation. Comparative balances for the six month period ended 31 December 2010 are not readily available and hence have not been presented.”
The net Profit after Tax increased by 24 percent to P63 million, which the management said was in line with the forecast in the Prospectus. Operating income was P308 million and not far from P451 million reported in 2011 full year results.
Choppies operates 49 stores in Botswana with 2 opened in the last 6 months. It has 10 in South Africa with the new one opened only this month in Delareyville.
The retailer’s main competitors this side and in South Africa are the retail groups Shoprite and Pick and Pay, which sell products that are similar to theirs.
In a statement accompanying the results, the retailer said four new stores will be opened in Botswana within the next six months, making the total number of stores in Botswana 53.
It added that five new stores will be opened in South Africa, within the next six months making the total number of stores in South Africa 15.
Choppies currently employs 800 people in South Africa and 3, 900 in Botswana.
The retailer, which has been likened to Marks and Spencer in the UK, Carrefour in France, Wal-Mart in the USA and Shoprite and Spar in South Africa, listed on the Botswana Stock Exchange (BSE) in January after a long period of behind the scenes activities.
There were talks that it might be eyeing JSE as it increases it presence across the continent.
But its Chief Executive Officer Ramachandran Ottapathu declined to comment on JSE move saying, “I do not have the mandate to discuss that information.”
Choppies was trading at 160 thebe a share on Monday as it shed 4.6 percent from Friday on the continued profit taking.