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Abridged Audited Group Financial Results for the Twelve Months ended 30 June 2022
CHOPPIES ENTERPRISES LIMITED
Registration number BW00001142508
ISIN:BW0000001072
BSE SHARE CODE: CHOPPIES
JSE SHARE CODE: CHP
Tax Reference Number: C08710401018
(“Choppies” or the “Company” or “the Group”)
ABRIDGED AUDITED GROUP FINANCIAL RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2022
The board of directors of Choppies (“the Board”) announces the results of the Group for the 12 months
ended 30 June 2022 (“FY2022”). These results have been audited by the external auditors who have
expressed an unmodified audit opinion thereon.
Continuing operations (audited) 2022 2021 Change
Pula Millions Pula Millions
Revenue 6,097 5,376 13%
Retail sales 6,042 5,331 13%
Gross Profit 1,307 1,189 10%
Operating Profit 279 226 23%
Operating margin 4.6% 4.2% 38 bps
Profit for the period 145 82 77%
Basic earnings per share 10.7 Thebe 5.2 Thebe 106%
Headline earnings per share 12.4 Thebe 6.5 Thebe 91%
Net cash flows generated from
463 378 85
operating activities
Cash and cash equivalents at end of
17 6 11
the period
Total operations including continuing and discontinued operations
Basic earnings per share 10.7 Thebe 5.2 Thebe 105%
Headline earnings per share 12.4 Thebe 6.5 Thebe 91%
Financial highlights
The Group’s sales increased by 13.3% to BWP 6 042 million (2021: BWP 5 331 million), driven by seven
new stores coupled with strong volume and price growth in the Rest of Africa. The Group’s like-for-like
sales growth was 10.2%.
In spite of the challenging trading conditions, Botswana continued to show a modest sales growth. In
Pula terms, gross profit grew by 9.9% to BWP 1 307 million (2021: BWP 1 189 million) despite the
challenging economic environment. The Gross Profit margin decline was related to higher-than-
expected supply chain costs, including fuel and managing prices due to higher cost Inflation.
Total operating costs increased by 7.4%, mainly driven by new stores and hyperinflation in Zimbabwe.
Group EBITDA increased by 7.2% and adjusted EBITDA, which excludes foreign exchange gains and
losses on lease liabilities from the Zambian operation, movements in credit loss allowances and
Zimbabwean legacy debt receipts, increased by 3.7%.
Operating profit increased by 23.5% from BWP 226 million to BWP 279 million as costs grew at a slower
rate than gross profit. EBIT margins improved from 4.2% to 4.6%.
The effective tax rate reduced from 29.3% to 19.4% due to unrecognised tax losses in Zambia.
The Group’s negative equity reduced by BWP 107m from BWP 448 million to BWP 341 million mainly
due to trading profits.
The Group’s inventory grew 35.2% reflecting higher costs of goods due to inflation and increased
inventory buys over the past quarter to address global supply chain constraints.
The Group continues to manage its cash resources and liquidity prudently with a reduction of BWP 62
million in net debt over the past 12 months. Net cash generated was P458 million, up 23.8% from last
year’s P378 million. Free cash flow of BWP 19 million (2021: BWP 85 million) was generated during the
year. Capital expenditure increased to BWP P115 million (2021 BWP60 million) as we invested in new
stores and maintained our distribution fleet. The Group settled gross debt of BWP 103 million.
The board decided that it is prudent at this period not to declare a dividend (2021: Nil).
This short-form announcement is the responsibility of the Board. It is only a summary of the information
contained in the Group's full FY2022 annual results announcement, which is available on the Botswana
Stock Exchange’s (“BSE”) X-News and on the JSE Limited (“JSE”) SENS at:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/CHP/CHP22.pdf and on the Group’s website:
https://choppiesgroup.com/investor-relations/.
This short-form announcement does not contain full or complete details and should not be used as a basis
for any investment decision in relation to the Company’s shares. The Group's full annual results
announcement is also available for inspection, at no charge, at the Company’s registered office (Plot
50371, Fairgrounds office park, Gaborone, Botswana) and the offices of the Company’s BSE and JSE
Sponsors during standard office hours.
Audit Opinion
The Group’s annual financial statements have been audited by Mazars who issued an unmodified audit
opinion.
Mazars’ audit report is published on X-News & SENS simultaneously with this abridged release of results.
This abridged financial information, has not been reviewed by the Group’s external auditor, and has been
extracted from the audited annual financial statements
The Company has a primary listing on the BSE and a secondary listing on the JSE.
21 September 2022
BSE Sponsoring Broker JSE Sponsor
Stockbrokers Botswana Limited PSG Capital
Date: 21-09-2022 09:00:00
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