Simbisa Brands Limited has announced a 44% jump in revenue for the half-year to December 31, 2018 to US$143.2 million, from US$99.3 million in H1.
The group said existing stores contributed 40% to the growth, with the remaining growth coming from 20 new stores opened during the period.
Operating profit rose by 82% to US$27.4 million from US$15.1 million previously.
Profit before tax increased by 111% to US$23.6 million from US$11.1 million in H1.
Resultantly, profit attributable to the owners of Simbisa increased by 99% to US$16.2million and basic earnings per share was up by 100% to 2.92 US cents.
Meanwhile, the group confirmed that it has put aside indefinitely its proposed secondary listing on the London Stock Exchange’s Alternative Investment Market (AIM) and acquisition of Foodfund on the back of deteriorating market conditions.
Both proposals had been put forward last year and had received shareholder approval.
“The proposed secondary listing on the London Stock Exchange Alternative Investments Market (AIM) has been postponed sine die,” said the group in its latest financial results statement.
“The Foodfund acquisition has been terminated by mutual agreement. The Listing transaction will be re-considered when market conditions are favourable and economic policies are more certain in both Zimbabwe and the United Kingdom.”
Simbisa had sought to acquire a 50 percent stake in the global family owned and run food and beverages company Foodfund and at the same time a secondary listing on AIM.
The secondary listing on AIM was expected to be done by end of last September, with the acquisition settled via a staggered issuance of up to 99 312 500 Simbisa AIM-listed shares issued to Foodfund sellers.
The staggered issuance would have been over a four year period.
The Foodfund transaction would have expanded Simbisa’s product offering range, from the Quick Service Restaurant (QSR) concept into the casual and fine dining space occupied by Foodfund.
Customer spend in the QSR business is between $0,50 and $9 while that of fine dining is between $10 and $80.