Chamwe Kaira
Losses in Namibia have pushed up Choppies Enterprises Limited’s effective tax rate as the retailer reported lower profits for the six months ended 31 December 2025.
The group said its effective tax rate increased to 22.2% from 17.3% in the previous period. It said this was mainly because it did not recognise deferred tax assets on losses in its Namibian operations. The increase was also influenced by a non-taxable gain linked to the derecognition of payables.
Profit for the period declined by 33% to BWP 77 million.
Revenue increased by 8.6% to BWP 5.125 billion, supported by retail sales growth of 8.9% to BWP 5.091 billion. The company said growth was driven by 25 new stores, price increases and higher volumes. Like-for-like sales rose by 2.9%.
Operating profit fell by 20% to BWP 152 million, while adjusted operating profit declined by 28.9% to BWP 145 million. Headline earnings per share dropped by 57.5% to 3.1 thebe.
The company said performance was affected by lower consumer spending linked to weakness in Botswana’s diamond sector, currency pressures and government spending cuts.
It said costs increased due to inflation, the rollout of a living wage in Botswana and higher promotional activity.
In Namibia, government-subsidised commodities affected margins. In Zambia, lower prices of key food items also weighed on performance.
Gross profit increased by 4.4% to BWP 1.007 billion, while the gross margin declined to 19.8% from 20.6%. Total expenses rose by 9.1% due to store expansion and inflation.
Cash generated from operations increased to BWP 324 million, and free cash flow rose to BWP 118 million.
The board declared an interim dividend of 1.0 thebe per share, down from 1.6 thebe in the previous period.
The company said it will continue to expand its store network and expects to benefit when regional economic conditions improve.
