Simbisa acquires Eswatini business

SIMBISA Brands (Simbisa) says it has completed the acquisition of the Eswatini business, previously a franchised market, as the group streamlines its operations.
The Victoria Falls Stock Exchange-listed firm’s operations in Eswatini are now company-owned and operated, profitable contributors to group performance with 17 counters currently trading under the Chicken Inn, Pizza Inn and Galito brands.
The regional fast-food restaurant operator said it strategically restructured the underperforming markets, Zambia, Ghana, and Mauritius, by transitioning them to franchised operations under highly experienced franchisees.
“As part of the re-organisation efforts previously communicated to stakeholders, the group has streamlined the brand portfolio to focus entirely on the best-performing core brands and markets in the region, which entailed the closure of several under-performing outlets and the decision to convert the three smallest markets to a franchise structure,” Simbisa group chief executive Basil Dionisio said in a statement accompanying financials for the half year ended December 31, 2023.

He said while focusing on fewer markets and brands, the group remains committed to growing its footprint.
The group rolled out 31 company-operated counters in 1H FY 2024, between 1 July and 31 December 2023.
Dionisio said with a further 37 counters in the pipeline for 2H FY 2024, to be opened between 1 January and 30 June 2024, this brings the total new store openings for the financial year to 68.
The group said it will continue to carefully monitor and adjust menu prices to maintain real returns whilst remaining sensitive to customer affordability as a hedge against high inflation and exchange rate weaknesses.
This comes as most of the markets the group operates in are being affected by high inflation and exchange rate distortions, which impact the group’s operations.
“Debt restructuring, local procurement, forward supplier contracts, and careful cost management policies will continue to be implemented to counter the pressure on margins,” Dionisio said.
During the period under review, revenue at US$147 million was seven percent above the prior comparative period driven primarily by higher average spend per customer.
Operating profit increased by 22,2 percent to US$24,67 million during the half year.
The group’s total assets declined by 8,4 percent to US$170,9 million for the period under review, while headline earnings for the period were US$9,71 million, an increase of 0,6 p