Staff Writer
Choppies Enterprises has confirmed the finalisation of its dividend for the financial year ending 30 June 2025.
Shareholders on the Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE) will receive the payout following the company’s earlier announcement on 22 September 2025.
A gross final dividend of 0.6 thebe per share has been declared for shareholders on the BSE.
After Botswana’s 10% withholding tax, the net amount will be 0.54 thebe per share.
For JSE shareholders, the dividend will be paid in South African Rand at an exchange rate of BWP 1 = ZAR 1.20150 as of 7 October 2025.
This provides a gross dividend of 0.72090 cents per share before taxes.
All shareholders are subject to a 10% withholding tax on dividends in Botswana. Non-exempt JSE shareholders will also be subject to South Africa’s 20% withholding tax, with the Botswana tax deducted, resulting in a net dividend of 0.57672 cents per share.
Under the Botswana-South Africa Double Tax Agreement, the total tax is capped at 15%, bringing the net dividend to 0.61277 cents per share.
Choppies retains its primary listing on the BSE and secondary listing on the JSE, continuing to provide value to its regional investors.
For the year ended 30 June 2025, Choppies reported mixed results across its southern African operations.
In Namibia, sales grew by 42.3%, with like-for-like sales up 33.06%. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 220%, while operating losses narrowed from BWP 14 million (N$18 million) in 2024 to BWP 9 million (N$11.7 million).
Profitability improved as new stores reached full potential, supported by stronger promotions and the implementation of an inventory optimisation system. The retailer operates more than 20 stores in Namibia and plans to expand into the south, where oil and green hydrogen projects are creating new business opportunities.
The Liquorama liquor division saw sales increase by 13.2% with 10 new stores, but EBITDA dropped 65.9%, and EBIT fell to a BWP18 million loss from a BWP14 million profit, driven by margin pressure and rising costs.
Other business units, including milling, manufacturing, and hardware, performed better. Milling and manufacturing remained profitable, while hardware losses narrowed to BWP18 million from BWP23 million. Adjusted EBIT for this segment improved to a BWP21 million profit from a BWP3 million loss.
Related-party purchases increased to BWP445 million from BWP431 million. After the reporting date, Botswana’s corporate tax rate was raised to 23.5%, effective June 2026, which will increase net liabilities by about BWP2 million.
The group cited currency volatility, inflation, higher diesel prices, new store expenses, and global economic uncertainty as key challenges. It said priorities include strengthening profitability in Botswana, Namibia, and Zambia; turning around Liquorama and hardware operations; maintaining financial discipline; and advancing its environmental, social, and governance goals.
