- Simbisa reported a 12.6% increase in total customer counts to over 15.21 million
- Simbisa grew its regional footprint, adding 30 company-owned and 6 franchised counters
- Ghana and Zambia will undergo restructuring to boost efficiency and performance
Harare - Simbisa Brands released their trading update for the third quarter ended 31 March 2023, demonstrating the group’s resilience in the face of significant economic headwinds. The fast-food giant reported a 12.6% increase in total customer counts to over 15.21 million and a 13% rise in real average spend, evidencing customers’ loyalty to Simbisa’s brands.
The macroeconomic environment remains challenging, with rising global food prices, record inflation levels, and currency volatility impacting Simbisa’s markets. In Zimbabwe, the official exchange rate depreciated 38% and year-on-year inflation hit 274% in March, squeezing consumer buying power. However, Simbisa grew its Zimbabwe footprint by 25 new counters in the past year, and Q3 customer counts rose 19.9% as value promotions offset economic pressures. The delivery segment was a bright spot, with total deliveries up 59.9% as Simbisa enhances its delivery capabilities.
Regionally, major markets Kenya and Ghana also grappled with soaring inflation and currency devaluation, denting consumer spending. However, Simbisa’s regional customer counts still rose 4% over 9 months, and dollar-based average spend increased by 13% thanks to strategic pricing. Simbisa grew its regional footprint, adding 30 company-owned and 6 franchised counters. In Kenya, the delivery platform Kutuma grew total deliveries by 37%.
Simbisa provided guidance to further improve profitability and gain market dominance. In Zimbabwe and Kenya, new store rollouts will continue. In other regional markets, the focus is optimizing existing infrastructure, as evidenced in Mauritius. Ghana and Zambia will undergo restructuring to boost efficiency and performance. Scaling delivery capabilities and improving customer experience remain priorities to unlock extra revenue streams.
Simbisa confirmed its resilience this quarter despite facing rising costs, economic upheaval, and squeezed consumer demand across markets. Strategic pricing, loyal customers, delivery growth, and footprint expansion have enabled Simbisa to weather the storm and deliver solid top and bottom-line growth this quarter. With further optimization planned, Simbisa seems poised to continue outperforming economically. Overall, this trading update should reassure stakeholders of Simbisa’s ability to navigate difficult conditions and unlock long-term value.
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