A myriad of challenges emanating from the COVID-19 pandemic continued affecting the Group’s financial performance in the period under review. This was exacerbated by the Russia-Ukraine crisis which resulted in global inflation as well as supply chain disruptions. In Zimbabwe, FY22 counter trading hours were 28% below normal, with seating restrictions and curfews being upheld throughout the period. Contrarily, regional operations returned to full capacity in the Group’s operating markets as Covid-19 operating restrictions eased. As a result, customer count for the Group grew 28.6% in FY22 versus the same period prior year, driven by continued investment in new store rollouts (86 new stores) and successful marketing and promotional initiatives in the review period which resulted in average spend increasing by 10.3% in real terms. The Group reviewed prices upward as much as necessary to hedge against the effects of inflationary pressures whilst remaining alert to the price elasticity of demand. Delivery sales continued on an upward trend increasing by 45% against the same period last year. To achieve a fair presentation of the Group’s financial performance and financial position, Simbisa estimated an exchange rate based on the market transaction rates and applied this rate to translate monetary foreign currency balances on the statement of financial position. The Group used the same estimated exchange rates to translate the results of its foreign subsidiaries. In the region, (excluding the impact of the Zimbabwe dollar exchange rate depreciation), revenue increased by 38% in USD terms, from a 30% increase in customer counts. Regardless, the Zimbabwe market continued contributing the bulk of the Company’s revenue at 63% versus 60% registered last year. In real terms, EBITDA margin remained firm at circa 17% despite the negative impact of global inflation which resulted in increased costs of raw materials, energy costs and other overheads. Of note is the surging of income tax by 138% on the back of new taxation laws in particular Intermediated Money Transfer Tax (IMTT). The Group’s cash and liquidity position remains strong despite significant capital investments in FY22. The company declared a final dividend of USc0.58 per share (interim ZWLc134) giving an implied dividend yield of 5.1%.
