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Audited Group financial results for the year ended 30 June 2026
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”)
AUDITED GROUP FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2026
The board of directors of Choppies (“Board”) announces the results of the Group for the year ended 30 June 2026
(“FY2026”).
Continuing operations audited 2026 2025 Change
Pula Millions Pula Millions
Revenue 9,889 9,173 7.8%
Retail sales 9,822 9,107 7.9%
Gross Profit 2,016 1,893 6.5%
Operating Profit 243 318 (23.6%)
Operating margin 2.47% 3.49% (102 bps)
Adjusted Operating Profit 219 351 (37.6%)
Profit for the period 74 151 (51.0%)
Basic earnings per share 4.1 Thebe 8.4 Thebe (51.2%)
Headline earnings per share 4.1 Thebe 9.4 Thebe (56.4%)
Net cash flows generated from operating activities 578 679 (101)
Total operations including continuing and discontinued operations
Basic earnings per share 4.1 Thebe 5.3 Thebe (23%)
Headline earnings per share 4.1 Thebe 8.1 Thebe (49%)
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.
Group profitability was impacted by:
• Reduced consumer liquidity driven by the Botswana diamond market slump
• Devaluation of the Pula
• Constrained spending due to the Botswana Government’s austerity measures
• The oil price shock and increase in fuel prices and transport costs
• 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 7.9% to BWP 9 822 million (2025: BWP 9 107 million), driven by 27 new stores
and inflation. Choppies segments achieved no volume growth and price growth of 9.9%, while sales for like-for-like
stores decreased by 1.2%.
The gross profit margin declined by 0.3% to 20.5% (2025: 20.8%), due to lower margins in all segments except
Liquorama. The Liquorama gross profit margin improved from 12.4% to 13.1% compared to the prior year.
In Pula terms, gross profit increased by 6.5% to BWP 2 016 million (2025: BWP 1 893 million) despite the competitive
and challenging economic environment.
Total expenses increased by 12.1% due to new stores and inflation. 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 were discontinued in the 2019 financial
year. Excluding the derecognition and loss on sale of businesses, total expenses increased by 14.4%.
Operating profit (EBIT) decreased by 23.6% from BWP 318 million to BWP 243 million. Adjusted EBIT decreased by
37.6% from BWP 351 million to BWP 219 million. The EBIT decline is due to costs growing at a much faster rate than
Pula gross profit.
Net finance costs increased 11.9% due to lower debt offset by higher interest on leases because of new stores.
The effective tax rate of 43.5% (2025: 30.7%) is 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 the derecognition of payables. Last year’s rate
was lower than the standard rate due to losses for which we did not raise any deferred tax and the loss on sale of
Zimbabwe.
The Board has resolved not to declare a final dividend for the FY 2026 (2025: 0.6 thebe) and to retain earnings currently
to preserve liquidity for core operations and support the Company's growth plans, considering current market
conditions. The Board remains committed to shareholder returns and will resume declarations as the Group delivers
sustainable earnings growth and achieves financial stabilisation.
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 FY2026 audited 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/FY2026.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.
18 September 2026
BSE Sponsoring Broker JSE Sponsor
Motswedi Securities (Pty) Ltd PSG Capital
Date: 18/09/2026 09:01:00
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