By Maricho Reporter
SIMBISA Brands, a focused group of light manufacturing businesses which, together with various strategically integrated agricultural operations, will invest US$17.8 million towards 36 new stores and revamping a further 36 in full year to June 30 2025.
This is part of strategic priorities which include not only expansion of store network but also the modernisation and revamping of existing outlets to enhance customer experience.
In addition, a restructure of some of the group’s property investments will occur in the same period.
In the just ended year, Simbisa opened 73 counters and closed nine counters, to close the reporting period with 601 company-operated counters (714 counters including franchised markets).
This is despite that the financial year ended June 30 2024 was characterised by consistent navigation of challenges while seizing opportunities as the group sought to reinforce its market position.
“Despite facing significant economic pressures, particularly in Kenya, Simbisa Brands has continued to push forward with many strategic investments which focus on enhancing customer experiences, operational efficiency, sustainability and growth,” said Addington Chinake, Simbisa Chairman.
Looking into the future, the group will focus on increasing its customer numbers and product range.
“Investigations of potential strategic raw material sourcing within the Common Market for Eastern and Southern Africa (COMESA) market are being explored, which will optimise the supply chain and mitigate some of the external economic pressures we face. The upgrade of a group wide Enterprise Resource Planning system (ERP) has been successful and resulted in better real-time financial reporting. In line with our goal to become more customer-focused, we have introduced a customer feedback platform for tracking and analysing customer feedback in all our markets,” said Chinake.
Simbisa boasts of an extensive presence in Africa, with outlets in Ghana, Mauritius, Kenya, Botswana, Malawi, Swaziland, DRC, Lesotho and Zambia.
It operates household brands such as Nando’s, Chicken Inn, Steers, Baker’s Inn, Pizza Inn, Haefelis, and Creamy Inn.
The group continued to grow its brand network and market share through new store openings
of the core and casual dining brands during the year under review.
“Efforts to increase the revenue contribution from delivery channels is ongoing. Simbisa continues to grow its market share in the delivery space without significantly impacting margins by using application-exclusive offers to drive volumes and revenue growth through delivery channels. The group has leveraged technology to greatly improve the customer experience through continuous evolvement of the Apps and App-exclusive promotions as well as shortened delivery times through rider and zoning optimisation,” according to Group CEO, Basil Dionisio.
“Despite the operating challenges faced, the strategic initiatives undertaken during the financial year under review enabled the group to achieve 6% increase in revenue in FY 2024 versus prior year. Customer counts increased 2% year-on-year whilst real Average Spend increased 4% due to firmer spend in both Zimbabwe and the Region.
“Cost pressures and a once-off non-recurring income from treasury investments in the prior year resulted in a 4% decline in operating profit in FY 2024 versus the prior year,” he added.
