Wrap Text
Abridged unaudited group financial results for the six months ended 31 December 2016
CHOPPIES ENTERPRISES LIMITED
(Incorporated in Botswana)
Registration number 2004/1681)
BSE share code: CHOPPIES (Primary Listing)
JSE share code: CHP (Secondary Listing)
ISIN: BW0000001072
Tax reference number: C08710401018
(“Choppies” or the “Company”)
ABRIDGED UNAUDITED GROUP FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER, 2016
HIGHLIGHTS
REVENUE +34% GROSS PROFIT +28% PROFIT AFTER TAX - 47%, RETAIL SPACE +36%, ASSET VALUE +26%, HEPS - 34%
COMMENTARY
1. Basis of preparation and accounting policies
The abridged unaudited financial information is prepared in accordance with IAS 34, Interim Financial Reporting.
The accounting policies have been applied consistently to all periods in the financial information presented.
The financial information is presented in Botswana Pula (rounded to the nearest thousand), which is considered the functional currency.
The interim financial information were reviewed, but not audited, by KPMG.
2. Performance highlights compared to half year ended 31 December 2015
Revenue up by 34% to 4.7 billion
Gross profit up by 28% to 915 million
Total number of stores increased by 37% to 202
Total retail space up by 36% to 290,968 Sq Mts
Tanzanian operations commenced on 23 September,2016
3. Financial overview & review of operations
Region New stores opened Number of stores as on 31 Dec 16
Botswana 4 83
South Africa 7 68
Zimbabwe 1 31
Zambia 5 10
Kenya 1 9
Tanzania 1 1
Botswana
Botswana contributed 49% to Group revenues. Trading conditions remained difficult due to the subdued economic conditions in the country. Profits in Botswana were materially impacted by the strengthening of the South African Rand against the Botswana Pula that resulted in a foreign exchange transaction gain lower than expected compared to 31 December 2015.
South Africa
The South African business achieved an EBITDA profit. Sales grew strongly in last quarter of calendar year 2016 and the continuation of this trend will result in South Africa achieving break even.
Zimbabwe
In spite of challenging economic conditions in Zimbabwe, profits increased substantially with revenue growth of 19% and EBITDA growth of 114% over the same period in the previous year.
Zambia, Kenya and Tanzania
These embryonic operations are gaining momentum with the opening of new stores which are progressing well.
4. Dividend
The company has a policy of declaring dividends once a year based on the annual results.
For and on behalf of the Board
Robert N Matthews R. Ottapathu
(Director) (Chief Executive Officer)
Registered office Transfer secretaries Auditors
Unit5, Plot 115, Kgale Mews Grant Thorton Business Services (Pty) Ltd KPMG
P O Box 406, Gaborone Acumen Park, Plot 50370, Fairgrounds Plot 67977, Off Tlokweng Rd, Fairgroud Park,
Botswane P O Box 11, Gaborone, Botswana P O Box 1519, Gaborone, Botswana
CHOPPIES ENTERPRISES LIMITED UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER, 2016
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
6 months ended 6 months ended 12 months ended
31 December, 2016 31 December, 2015 30 June, 2016
P ' 000 P ' 000 P ' 000
Revenue 4 713 772 3 530 669 7 369 005
Cost of sales (3 798 231) (2 816 860) (5 924 214)
Gross profit 915 541 713 809 1 444 791
Other income 21 728 33 459 52 265
Operating income 937 269 747 268 1 497 056
Expenditure (847 705) (606 147) (1 348 442)
Administrative expenses (678 769) (491 489) (1 086 843)
Selling and distribution expenses (29 952) (18 923) (49 022)
Other operating expenses (138 984) (95 735) (212 577)
Operating profit before interest and taxation 89 564 141 121 148 614
Interest cost (18 498) (11 595) (26 664)
Interest received 2 221 3 948 5 450
Profit before taxation 73 287 133 474 127 400
Taxation (17 732) (29 371) (22 495)
Profit after taxation 55 555 104 103 104 905
Attributable to :
Owners of the company 58 383 104 350 109 527
Non-controlling interests (2 828) (247) (4 622)
Other comprehensive income:
Items that will be reclassified to profit or loss
Foreign currency translation
differences from foreign operations 13 529 (13 631) (19 681)
Attributable to :
Owners of the company 14 625 (15 702) (21 055)
Non-controlling interests (1 096) 2 071 1 194
Total comprehensive income 69 084 90 472 85 044
Attributable to :
Owners of the company 73 008 88 648 88 472
Non-controlling interests (3 924) 1 824 (3 428)
Earnings per share (Thebe) 4.52 8.08 8.48
Headline earning per share (Thebe) 4.52 6.84 7.25
Dividend per share (Thebe) 2.83 4.88 4.88
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
31 December, 2016 31 December, 2015 30 June, 2016
P ' 000 P ' 000 P ' 000
Assets
Non current assets 1 835 754 1 446 489 1 740 579
Plant and equipment 1 182 159 875 003 1 082 968
Deferred taxation 68 043 27 637 51 431
Investments in new projects 79 022 50 180 95 560
Goodwill 506 530 493 669 510 620
Current assets 1 501 170 1 204 514 1 115 556
Inventories 974 306 674 406 703 539
Investment 3 3 3
Advances and deposits 67 276 57 715 83 212
Trade and other receivables 258 665 215 748 191 444
Amounts due from related entities 6 913 7 645 4 901
Cash and cash equivalents 221 007 248 997 132 457
Total assets 3 336 924 2 651 003 2 856 135
Equity and liabilities
Equity 1 506 147 1 479 020 1 473 593
Share capital 875 476 875 476 875 476
Preference shares 87 86 87
Retained earnings 656 676 629 646 634 823
Non-controlling Interests (5 317) 3 859 (1 393)
Foreign currency translation reserve (20 775) (30 047) (35 400)
Non current liabilities 519 015 331 925 468 072
Long term borrowings 453 000 288 442 412 897
Deffered lease liabilities 66 015 43 483 55 175
Current liabilites 1 311 762 840 058 914 470
Current portion of deferred lease liabilities 2 882 4 492 4 651
Bank overdrafts 51 307 27 329 80 371
Trade and other payables 1 102 510 695 374 694 411
Amounts due to related entities 15 182 7 687 9 551
Taxation payable 13 299 20 326 20 027
Current portion of long term borrowings 126 582 84 850 105 459
Total equity and liabilities 3 336 924 2 651 003 2 856 135
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Stated Capital Preference Shares Retained Earnings Foreign Currency Non-Contolling Total
Translation Reserve Interest
P ' 000 P ' 000 P ' 000 P ' 000 P ' 000 P ' 000
Balance as on 30 June 2015 (Audited) 875 476 86 588 286 (14 345) 2 035 1 451 538
Total comprehensive income for the period (6 Months) - - 104 350 (15 702) 1 824 90 472
Profit - - 104 350 - (247) 104 103
Other comprehensive income - - - (15 702) 2 071 (13 631)
Transactions with owners - - (62 990) - - (62 990)
Dividend declared - - (62 990) - - (62 990)
Balance as on 31 Dec 2015 (Unaudited) 875 476 86 629 646 (30 047) 3 859 1 479 020
Total comprehensive income for the period (6 Months) - - 5 177 (5 353) (5 252) (5 428)
Profit - - 5 177 - (4 375) 802
Other comprehensive income - - - (5 353) (877) (6 230)
Transactions with owners - 1 - - - 1
Issue of preference shares - 1 - - - 1
Balance as on 30 June 2016 (Audited) 875 476 87 634 823 (35 400) (1 393) 1 473 593
Total comprehensive income for the period (6 Months) - - 58 383 14 625 (3 924) 69 084
Profit - - 58 383 - (2 828) 55 555
Other comprehensive income - - - 14 625 (1 096) 13 529
Transactions with owners - - (36 530) - - (36 530)
Dividend declared - - (36 530) - - (36 530)
Balance as on 31 December 2016 (Unaudited) 875 476 87 656 676 (20 775) (5 317) 1 506 147
ABRIDGED CONSOLIDATED STATEMENT OF CASHFLOWS
(Unaudited) (Unaudited) (Audited)
6 months ended 6 months ended Year ended
31 December, 2016 31 December, 2015 30 June, 2016
P ' 000 P ' 000 P ' 000
Net cashflows generated from operating activities 254 424 147 113 199 039
Net cashflows used in investment activities (179 538) (215 621) (567 125)
Net cashflows generated from financing activities 42 728 8 921 138 917
Net movement in cash and cash equivalents 117 614 (59 587) (229 169)
Cash and cash equivalents at the begining of the period 52 086 281 255 281 255
Cash and cash equivalents at the end of the period 169 700 221 668 52 086
ABRIDGED SEGMENTAL RESULTS
Particulars Botswana South Africa Other Regions Total
P ' 000 P ' 000 P ' 000 P ' 000
Six months ended 31 December 2016 (Unaudited)
Statement of profit or loss and other comprehensive income
Revenue:
Trading income 2 286 333 1 493 708 933 731 4 713 772
Other income 15 324 4 532 1 872 21 728
Total segment revenue 2 301 657 1 498 240 935 603 4 735 500
Reportable segment EBITDA 165 778 13 525 10 056 189 359
Reportable segment depreciation 44 855 34 258 20 682 99 795
Reportable segment net interest cost 10 874 2 590 2 813 16 277
Reportable segment profit/(loss) before taxation 110 050 (23 323) (13 440) 73 287
Statement of financial position
Reportable segment assets 1 478 862 1 035 555 822 507 3 336 924
Reportable segment liabilities 843 075 608 072 379 630 1 830 777
Six months ended 31 December 2015 (Unaudited)
Statement of profit or loss and other comprehensive income
Revenue:
Trading income 2 265 942 672 697 592 030 3 530 669
Other income 30 880 1 834 745 33 459
Total segment revenue 2 296 822 674 531 592 775 3 564 128
Reportable segment EBITDA 216 235 (13 324) 12 629 215 540
Reportable segment depreciation 38 223 26 048 10 147 74 418
Reportable segment net interest cost 3 800 691 3 157 7 648
Reportable segment profit/(loss) before taxation 174 212 (40 063) (675) 133 474
Statement of financial position
Reportable segment assets 1 522 831 541 131 587 041 2 651 003
Reportable segment liabilities 614 661 223 070 334 252 1 171 983
Year ended 30 June 2016 (Audited)
Statement of profit or loss and other comprehensive income
Revenue:
Trading income 4 545 097 1 534 999 1 288 909 7 369 005
Other income 45 926 4 540 1 799 52 265
Total segment revenue 4 591 023 1 539 539 1 290 708 7 421 270
Reportable segment EBITDA 353 134 (43 105) (13 312) 296 717
Reportable segment depreciation 77 517 49 911 20 675 148 103
Reportable segment net interest cost 13 825 614 6 775 21 214
Reportable segment profit/(loss) before taxation 261 792 (93 630) (40 762) 127 400
Statement of financial position
Reportable segment assets 1 384 022 745 168 726 945 2 856 135
Reportable segment liabilities 750 693 291 250 340 599 1 382 542
HEADLINE EARNINGS PER SHARE
DEC-16 DEC-15 JUN-16
Basic Earnings 58 383 415 104 350 340 109 526 624
(Profit after tax attributable to owners of the company)
Remeasurements:-
Profit on sale of asset (45 634) (20 521 841) (20 387 294)
Tax effect on remeasurements 10 039 4 514 805 4 496 202
Remeasurements (Net of Tax) (35 595) (16 007 036) (15 891 092)
Headline earnings 58 347 820 88 343 303 93 635 533
Number of shares 1 291 628 341 1 291 628 341 1 291 628 341
In Thebe 4.52 6.84 7.25
Earnings per share (Basic & Diluted) In thebe 4.52 8.08 8.48
The abridged consolidated financial results and financial position of Choppies Enterprises Limited are extracted from the unaudited group annual financial statements
prepared in accordance with International Financial Reporting Standards ("IFRS"), under the historical cost convention except for certain financial instruments
which are disclosed at fair value.
Botswana
14 March 2017
Enquiries:
Choppies
Ramachandran Ottapathu +267 3186657 ram@choppies.co.bw
Sanooj Pullarote +267 3971855 sanooj@choppies.co.bw
Sponsor
RAND MERCHANT BANK( A division of First Rand Bank)
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