Botswana's Choppies FY revenue rises on new stores and inflation

By Reuters News


Overview

  • Botswana food retailer's FY2026 revenue rose 7.8% as new stores and inflation drove sales

  • Operating profit fell 23.6% as expenses outpaced gross profit growth


Outlook

  • Choppies says food retail fundamentals remain intact despite cyclical demand contraction

  • Board will resume dividends when sustainable earnings growth and financial stabilisation are achieved


Result Drivers

  • MACROECONOMIC PRESSURES - Co said profitability was impacted by reduced consumer liquidity, Pula devaluation, government austerity, higher fuel prices, and inflationary costs

  • EXPANSION COSTS - Total expenses rose 12.1% due to new stores and inflation, with new stores not yet reaching maturity

  • SALES DRIVERS - Retail sales growth of 7.9% was driven by 27 new stores and inflation, with no volume growth and a 1.2% decline in like-for-like sales


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Gross Margin

20.50%


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