Sharenet Sites 
Sharenet Sites
Trading statement
CHOPPIES ENTERPRISES LIMITED
(Incorporated in the Republic of Botswana)
Registration number: BW00001142508
BSE SHARE CODE: CHOP-EQO
JSE SHARE CODE: CHP
ISIN: BW0000001072
("Choppies") or (the "Group") or ("Company")
TRADING STATEMENT
In terms of the Listings Requirements of the Botswana Stock Exchange ("BSE") and the JSE Limited ("JSE"),
companies are required to publish a trading statement as soon as they become reasonably certain that the
financial results for the period to be reported on next will differ by more than 10% (in the case of the BSE)
or more than 20% (in the case of the JSE) from the financial results reported for the previous corresponding
period.
Choppies is currently finalising its financial results for the 6 months ended 31 December 2025 ("HY2026).
Profit after tax from total operations is expected to be in the range between negative 14% to negative 4%.
Profit after tax from continuing operations is expected to be in the range between negative 38% to
negative 28%.
Group profitability was impacted by:
- Botswana diamond-market slump reducing consumer liquidity
- Devaluation of the Pula to combat economic strain from a severe downturn in the global diamond
market
- Botswana Government austerity measures constraining spending
- Inflationary cost base
- New stores not yet at maturity curve
- Living wage implementation 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 revenue momentum remains strong, but profitability was temporarily impacted by weaker
macroeconomics. The demand contraction is cyclical, but food retail fundamentals remain intact.
Free cash flow is expected to grow between 118% to 128% and net cash generated from operating
activities is expected to grow between 2% and 12%, despite the expected decline in profits.
We plan to declare a dividend, but lower than last year. The dividend will reflect a 25% pay-out ratio,
aligned with the Group's dividend cover policy of three times earnings excluding non-cash gains.
The reduced Thebe dividend reflects lower profitability due to regional economic pressures.
We continued to pay the living wage in Botswana and employed an additional 626 staff throughout the
Group despite the economic challenges.
Consortium Debt was repaid during January 2026 of BWP 82 million funded by internal cash resources of
BWP 35 million and short-term debt of BWP 47 million.
Choppies expects the HY2026financial results to be within the following ranges: -
HY2026 HY2026 HY2025
Expected range Expected range As reported
(%)
Profit after tax - BWP Millions
Total operations including continuing operations (14%) - (4%) 73 - 82 85
Continuing operations (38%) - (28%) 71 - 83 115
Adjusted EBIT - BWP Millions
Total operations including continuing operations (5%) - 5% 138 - 152 145
Continuing operations (34%) - (24%) 135 - 155 204
Adjusted EBITDA - BWP Millions
Total operations including continuing operations (2%) - 8% 285 - 314 291
Continuing operations (19%) - (9%) 281 - 316 347
Earnings per share - thebe
Total operations including continuing operations (12%) - (2%) 4.0 - 4.4 4.5
Continuing operations (36%) - (26%) 3.9 - 4.5 6.1
Headlines earnings per share - thebe
Total operations including continuing operations (55%) - (45%) 2.8 - 3.4 6.2
Continuing operations (63%) - (53%) 2.7 - 3.4 7.3
Cash generated from operations - BWP Millions 2% - 12% 310 - 340 304
Free Cash Flow - BWP Millions 118% - 128% 116 - 121 53
The Group expects continued resilience in core markets despite external challenges, including regional
currency volatility, inflationary pressures, and global uncertainty. Strategic priorities remain:
- Consolidating profitability in Botswana, Namibia, and Zambia,
- Completing the turnaround of Builders Mart and Liquorama,
- Extract efficiencies from distribution and inventory systems,
- Maintain cost discipline amid macro volatility,
- Roll out of the new ERP,
- Maintaining financial discipline, and
- Advancing ESG initiatives.
The Board remains confident that Choppies is positioned for sustainable growth and improved shareholder
returns. The Group is building scale now to capture operating leverage during recovery.
The estimated financial information on which this trading statement is based has not been reviewed nor
reported on by the Company's external auditors. Accordingly, shareholders are advised to exercise caution
when trading in the Company's securities until such time as the actual results are released. The Company
expects to release its HY2026 condensed financial results on or about 27 March 2026.
The Company's primary listing is on the BSE and its secondary listing is on the JSE.
09 March 2026
BSE Sponsoring Broker JSE Sponsor
Motswedi Securities (Pty) Ltd PSG Capital
Date: 09-03-2026 04:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
