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Unaudited Group financial interim results for the six months ended 31 December 2025
CHOPPIES ENTERPRISES LIMITED
Registration number BW00001142508
ISIN:BW0000001072
BSE SHARE CODE: CHOP-EQO
JSE SHARE CODE: CHP
Tax Reference Number: C08710401018
("Choppies" or "Company" or "Group")
UNAUDITED GROUP FINANCIAL INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
The board of directors of Choppies ("Board") announces the results of the Group for the 6 months ended 31 December
2025 ("HY2026").
Continuing operations unaudited HY2026 HY2025 Change
Pula Millions Pula Millions
Revenue 5,125 4,717 8.6%
Retail sales 5,091 4,677 8.9%
Gross Profit 1,007 965 4.4%
Operating Profit 152 190 (20.0%)
Operating margin 2.99% 4.06% (108 bps)
Adjusted Operating Profit 145 204 (28.9%)
Profit for the period 77 115 (33.0%)
Basic earnings per share 4.2 Thebe 6.1 Thebe (31.1%)
Headline earnings per share 3.1 Thebe 7.3 Thebe (57.5%)
Net cash flows generated from operating activities 324 304 20
Free cash flow 118 53 65
Cash and cash equivalents at end of the period 49 72 (23)
Total operations including continuing and discontinued operations
Basic earnings per share 4.2 Thebe 4.5 Thebe (7%)
Headline earnings per share 3.1 Thebe 6.2 Thebe (50%)
Financial highlights
Revenue momentum remains strong; profitability temporarily impacted by macroeconomics. The demand
contraction is cyclical, but food retail fundamentals remain intact. The group is building scale now to capture
operating leverage during recovery.
Group profitability was impacted by:
• Reduced consumer liquidity driven by the Botswana diamond-market slump
• Devaluation of the Pula to combat economic strain from a severe downturn in the global diamond market
• Constrained spending due to Botswana Government's austerity measures
• Inflationary cost base
• New stores not yet reaching the maturity curve
• Implementation of living wage in Botswana
• Government subsidised commodities in Namibia
• Deflation on key food lines in Zambia due to the Kwacha appreciating
• Promotional intensity in a constrained consumer market
The Group's retail sales increased by 8.9% to BWP 5 091 million (2024: BWP 4 677 million), driven by 25 new stores,
inflation, and volume growth. Choppies segments achieved volume growth of 3.8% and price growth of 7.1%, while
sales for like-for-like stores increased by 2.9%.
The gross profit margin declined by 0.8% to 19.8% (2024:20.6%), due to lower margins in all segments except
Liquorama. The Liquorama gross profit margin improved from 12.3% to 13.6% compared to the prior year.
In Pula terms, gross profit increased by 4.4% to BWP 1 007 million (2024: BWP 965 million) despite the competitive
and challenging economic environment.
Total expenses increased by 9.1% due to new stores, inflation, the derecognition of payables and loss on the sale of
businesses in the previous year. The loss of BWP 14 million last year relates to the sale of the Zimbabwe segment
and this year included a gain from the derecognition of payables resulting from the discontinued operations of
Kenya, Tanzania, and Mozambique, which we shut down in the 2019 financial year. Excluding the derecognition and
loss on sale of businesses, total expenses increased by 13.5%.
Operating profit (EBIT) decreased by 20.0% from BWP 190 million to BWP 152 million. Adjusted EBIT decreased by
28.9% from BWP 204 million to BWP 145 million. The EBIT decline is due to costs growing at a much faster rate than
Pula gross profit.
Net finance costs grew 1.9% due to lower debt offset by higher interest on leases as a result of new stores.
The effective tax rate of 22.2% (2024: 17.3%) is slightly higher than the standard rate primarily due to losses in Namibia
for which we have not yet raised any deferred tax, and non-taxable gain on recognition of payables. Last year's rate
was lower than the standard rate due to deferred tax raised on carried forward tax losses in the Zambia segment.
The Board has declared an interim dividend (number 11) of 1.0 thebe per ordinary share (2024: 1.6 thebe), payable
on 29 April 2026. The dividend reflects a 25% pay-out ratio, aligned with the Group's dividend cover policy of three
times earnings (excluding non-cash gain on derecognition of payables of BWP 20 million). The reduced Thebe
dividend reflects lower profitability due to regional economic pressures.
A separate announcement relating to the salient dates and the tax treatment of the ordinary dividend will be released
on the BSE's X-News and on the JSE's SENS.
Short-form announcement
This short-form announcement is the responsibility of the Board. It is only a summary of the information contained in
the Group's condensed HY2026 Interim financial statements ("Full Announcement"), which is available on the BSE's X-
News and on the JSE's SENS at : https://senspdf.jse.co.za/documents/2026/jse/isse/chp/hy2026.pdf
and on the Group's website: https://choppiesgroup.com/investor-relations/.
Any investment decision should include consideration of the information in the Full Announcement.
The Company has a primary listing on the BSE and a secondary listing on the JSE.
25 March 2026
BSE Sponsoring Broker JSE Sponsor
Motswedi Securities (Pty) Ltd PSG Capital
Date: 25-03-2026 09:00:00
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