Saturday, March 2, 2024

Choppies retains earnings in Zimbabwe operations

A divided announcement made recently by retail giant Choppies limited does not include profits from the Zimbabwean operations, the BSE quoted group has noted in information released to the markets recently. 

In the dividend declaration notice released on Friday, Choppies noted that the gross final dividend of 4.8768 thebe per share in the financial results for the year ended 30 June 2015 does not include profit from its Zimbabwe operations. The giant retailer disclosed that the profits from Zimbabwe will be retained for the purpose of funding the store’s growth plans. 

“Profit from the Zimbabwe segment is not included in the distributed profit since we intend to utilise the same for further expansion there,” read the statement. 

In its financial results statement released last month, Choppies highlighted that despite the difficult economic situation prevailing in Zimbabwe, the retailer has reported positive revenue growth. Choppies acquired seven stores in Zimbabwe during the year, adding to the six that it opened in Botswana and 11 in South Africa. The results statement also revealed that the average basket size reduced significantly. The results statement did not specifically highlight Zimbabwe’s growth plans in its future prospects, but disclosed that the leading retailer will roll out more than 35 stores in all regions by the end of the financial year 2016, which will however exclude acquisitions.    

The gross final dividend was declared on 22 September 2015 and payment to ordinary shareholders is expected to be done on 23 October 2015. In accordance with Botswana Stock Exchange (BSE) regulations dividend payments of less than BWP 50 will be paid electronically to shareholders. The notice therefore requested shareholders to provide their bank account details to the transfer secretaries being Grant Thornton either by post, fax or hand delivery so that their dividends may be paid electronically. The notice adds that net dividends cheques will be dispatched or electronically paid to shareholders in Botswana on 9 November 2015 through Grant Thornton. With respect to shareholders registered on the Johannesburg Stock Exchange (JSE) the notice states that: “The dividend shall be paid in Rand to shareholders on the South African register, calculated at the Pula to Rand exchange rate on 22 September 2015, which was BWP1/R1.295. Accordingly the gross dividend payable is 6.31546 cents per share.


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