Chamwe Kaira
Choppies Enterprises Limited reported a mixed performance across its southern African operations for the year ended 30 June 2025.
In Namibia, sales grew 42.3%, with like-for-like sales up 33.06%.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 220%, while EBIT losses narrowed from BWP14 million (N$18 million) in the prior year to BWP9 million (N$11.7 million).
“Profitability improved as new stores reached full potential, supported by better promotional activity and the completion of an inventory optimisation system,” the company said.
The retailer operates more than 20 stores in Namibia and is considering expanding into the south, where oil and green hydrogen projects are creating new opportunities.
In Zambia, sales rose 12.4% in pula terms, equal to 26.7% in kwacha value.
Like-for-like sales grew 2.8% in pula and 15.8% in kwacha. The segment opened nine new stores and closed one.
Currency depreciation and drought-related power shortages pushed diesel costs to BWP35 million from BWP9 million the previous year. Adjusted EBITDA rose 19% and adjusted EBIT increased 37.7%.
The group exited Zimbabwe in December 2024, selling that segment’s net assets to a regional supermarket chain.
In Botswana, sales increased 11.4% to BWP5.66 billion, with like-for-like sales up 7.1%. EBITDA grew 8%, but profitability was hit by costs rising faster than gross profit.
The Liquorama liquor division grew sales by 13.2% with 10 new stores, but EBITDA dropped 65.9%, and EBIT swung to a BWP18 million loss from a BWP14 million profit due to margin pressure and higher expenses.
Other businesses, 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 totalled BWP445 million, up 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 regional currency volatility, inflation, higher diesel costs, new store expenses, and global uncertainties as challenges.
“Priorities include consolidating profitability in Botswana, Namibia and Zambia, turning around Liquorama and hardware operations, maintaining financial discipline, and advancing ESG initiatives,” the company said.
The board reduced the dividend due to losses in Zimbabwe, higher costs, and a higher tax rate but said it expects continued resilience in its core markets.
Caption
Choppies says its new stores are reaching full potential.
- Photo: Choppies
