Choppies half-year HEPS up 2%

Botswana Retailer Choppies has released its half-year results, showcasing a 21.3 percent increase in retail sales. This growth was mainly attributed to the addition of 10 new stores and the acquisition of 100 liquor and hardware stores. Ramachandran Duttappa, CEO of Choppies, discussed the company's performance in a recent CNBC Africa interview. The CEO highlighted the challenges faced during the reporting period, particularly in Zimbabwe, where economic difficulties impacted the company's overall performance. However, strong results in Botswana and Zambia helped offset some of these challenges. Despite facing a weak operating environment characterized by price pressures and high interest rates, Choppies managed to achieve impressive growth in profitability and earnings. The company reported a 21.3 percent increase in revenue and a 2 percent rise in headline earnings per share, driven by the strong performance in Botswana and Zambia. Duttappa emphasized the positive impact of the new stores on the company's financial performance. Choppies currently operates in four African markets - Botswana, Zimbabwe, Zambia, and Namibia. While Botswana and Zambia experienced significant growth, Namibia struggled to generate positive profits with only 18 stores. The hyperinflation in Zimbabwe contributed to a challenging operating environment in that market. However, the recent acquisition of Camuso is expected to have a positive impact on Choppies' future results. In light of the weak performance in Zimbabwe, there were questions raised about the company's commitment to operating in the country. Duttappa confirmed Choppies' dedication to the Zimbabwean market, citing the ability to generate some profit despite the challenging conditions. The CEO stated that as long as operations in Zimbabwe do not drain resources from other markets, the company will continue to trade in the country. When asked about potential expansion into South Africa and Mozambique, Duttappa indicated that there are currently no plans to enter these markets. The focus remains on improving performance in existing markets such as Botswana, Zambia, and Namibia. The CEO expressed optimism about the company's prospects, especially with the addition of Camuso and efforts to enhance profitability across all operational regions. Overall, Choppies' half-year results paint a picture of growth and resilience amidst challenging economic conditions in certain markets. The company's strategic focus on strengthening operations and driving profitability bodes well for its future performance.