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Abridged audited group financial results for the year ended 30 June 2020
CHOPPIES ENTERPRISES LIMITED
Registration number 2004/1681
ISIN:BW0000001072
JSE SHARE CODE: CHP
BSE SHARE CODE: CHOPPIES
Tax Reference Number: C08710401018
“Choppies” or the “Company” or “the Group”
ABRIDGED AUDITED GROUP FINANCIAL
RESULTS FOR THE YEAR ENDED 30 JUNE 2020
The Board of Choppies Enterprises Limited announces the results of the Group for the year ended June
2020.
Financial highlights
Key financial data -
Continuing businesses only 2020 2019 Change
(audited)
Pula Millions Pula Millions
Revenue 5,421 5,359 1%
Gross profit 1,253 1,216 3%
Gross margin 23.1% 22.7% 40 bps
Operating profit 208 92 126%
Operating margin 3.8% 1.7% 212 bps
Profit for the period 99 7 1314%
Earnings per share basis 8.1 Thebe 0.9 Thebe 767%
Headline earnings per share basic 9.1 Thebe 2.8 Thebe 227%
Net cash flows generated from
operating activities 619,148 551,381 67,767
Cash and cash equivalents at end of the
period (88,061) (41,440) (46,621)
Total business (audited) 2020 2019 Change
Loss for the period (371) (429) (14%)
Earnings per share basis (25.3 Thebe) (30.2 Thebe) (16%)
Headline earnings per share basic (15.3 Thebe) (25.9 Thebe) (41%)
The disclosure of the Group’s results is affected by:-
• The decision of the Board to discontinue / dispose of its operations in South Africa, Kenya,
Tanzania, and Mozambique. Accordingly, the results of these operations are disclosed with
effect from 1 July 2019 in terms of IFRS 5 “Discontinued Operations”.
•
The introduction of IFRS 16 – Leases. The Group has adopted the modified retrospective
approach. Under this approach, comparative information is not restated. Consequently, the date
of initial application is the first day of the 2020 financial year.
Commentary will focus only on the continuing operations.
The impact of IFRS 16 on FY2020 is shown in the table below where we restated FY2020 to be
comparable to FY2019, where IFRS 16 was not applied.
Total for
Continued
Impact of IFRS 16 on EBITDA growth rates Botswana Zambia Zimbabwe Namibia operations
As reported - P’000
FY2020 EBITDA as reported after IFRS 16 468,079 (9,024) 19,495 (5,697) 472,853
FY 2019 EBITDA as reported before for IFRS 16 258,343 (38,032) 15,149 (9,233) 226,228
% Growth as reported 81.2% (76.3%) 28.7% (38.3%) 109.0%
Pula variance FY2020 to FY2019 as reported 209,736 29,008 4,346 3,536 246,625
Restating FY2020 for IFRS 16 to be comparable to FY2019 - P’000
FY2020 EBITDA as reported before IFRS 16 316,556 (4,366) 15,725 (11,261) 316,654
% Growth on a comparable basis 22.5% (88.5%) 3.8% 22.0% 40.0%
Pula variance FY2020 to FY2019 comparable basis 58,213 33,666 576 (2,028) 90,426
Group revenue, comprising of sale of goods, from the continuing operations, increased by 1.1% to P5 421
million (2019: P5 359 million). This increase was inflation driven in Botswana and Zimbabwe against a
backdrop of negative sales volumes in Botswana and Zimbabwe due to the impact of the Covid-19
pandemic. The impact of the COVID-19 pandemic on the Group’s continuing operations revenue is
estimated at P190 million.
Gross profit margins improved slightly to 23.1% (2019: 22.7%) following another good performance in
the Botswana operations.
Group EBITDA on a comparable basis (i.e. before accounting for IFRS 16) increased to P316.7 million
(2019 P226.3 million) due to the improvement in gross profit margins and strict cost control.
Total assets reduced by P346.3 million from P2 187.1 to P1 840.8 million despite the addition of right-of-
use assets in terms of IFRS 16 to the value of P772.1m. The net reduction in total assets was mainly as a
result of the discontinued operations.
Net borrowings excluding the IFRS 16 Lease liabilities decreased from P660.3 million to P636.1 million
as the Group continues to prioritize the reduction of debt.
The Board has considered it prudent to not declare a dividend for the period under review
This short form announcement is the responsibility of the Board of Directors of Choppies Enterprises
Limited and is a summary of the information in the full announcement available on the Stock Exchange
News Service (“SENS”) at https://senspdf.jse.co.za/documents/2020/JSE/ISSE/CHP/CHPJUNE20.pdf and
on the Group’s website: https://choppiesgroup.com/investor-relations/.
This announcement does not contain full details and should not be used as a basis for any investment
decision in relation to the Company’s shares. The full announcement is also available for inspection, at no
charge, at the Company’s registered office (Plot 50371, Fairgrounds office park, Gaborone, Botswana.) and
the office of the Sponsor during standard office hours.
25 September 2020
Sponsors:
Stockbrokers Botswana Ltd
Plot 67978, Ground Floor, East Wing, Polokwane House, Fairgrounds, Gaborone, Botswana Telephone:
+267 395 7900
Rand Merchant Bank (A division of First Rand Bank Limited)
1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196 Telephone:
(011) 282 8231
Date: 25-09-2020 09:00:00
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