- Anticipates profit after tax of P137m to P153m
- Chain grocery retailer’s return to profitability began in 2021
- Is rolling out ‘On the Go by Choppies’ at filling stations
Leading Fast Moving Consumer Goods (FMCG) retailer, Choppies Enterprise Limited, anticipates higher profits as it continues on its path to return to profitability.
In a trading statement issued recently, the grocery retailer notified its shareholders that it is currently finalising its financial results for the 12 months ended 30 June 2022 (FY2022) which it expects to release on or about 22 September. The company says for the HY 2022 financials, it anticipates profit after tax from continuing operations to range between 67 and 87 percent or between P137 and P153 million.
This is an increase from P80 million which was reported as profit after tax from continuing operations in 2021. Profit after tax from both continuing and discontinued operations is expected to grow by between 132 and 152 percent or P139 and P151 million, a growth from P60 million recorded last year. The latest projections mark the continuation of Choppies’ return to profitability which started last year. The year before that, Choppies registered a staggering loss of P371 million. Choppies’ return to profitability began in 2021 as it started reaping the benefits of restructuring the business following its exit from underperforming investments.
The year before, in 2020, the Choppies board decided to discontinue or dispose of its operations in South Africa, Kenya, Tanzania and Mozambique. Choppies currently operates over 150 stores across the SADC region. The majority of them, about 90 of the stores, are in Botswana while there are 32 in Zimbabwe. It has 26 stores in Zambia and six in Namibia. It started rolling out convenience stores styled ‘On the Go by Choppies’ at filling stations in Botswana, which are expected to add value to the largest retailer.