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CHOPPIES ENTERPRISES LIMITED - Abridged Audited Group Financial Results For The Twelve Months Ended 30 June 2021

Release Date: 22/09/2021 09:00
Code(s): CHP     PDF:  
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Abridged Audited Group Financial Results For The Twelve Months Ended 30 June 2021

 (Incorporated in the Republic of Botswana)
 Registration number: BW00001142508
 JSE share code: CHP
 BSE share code: Choppies
 ISIN: BW0000001072
 (“Choppies” or “the Company”)

 ENDED 30 JUNE 2021

The board of directors of Choppies (“the Board”) announces the results of the Group for the
12 months ended 30 June 2021.

This short-form announcement is the responsibility of the Board and is only a summary of the
information contained in the Group's full FY2021 annual results announcement.

 Continuing operations                                2021            2020       Change
                                                       Pula           Pula
                                                   Millions        Millions

 Revenue                                              5331           5421            (2%)
 Gross Profit                                         1189           1253            (5%)
 Gross Margin                                        22.3%          23.1%        (80 bps)
 Operating Profit                                      226            208              9%
 Operating margin                                     4.2%           3.8%          40 bps
 Profit for the period                                  82             99           (17%)
 Basic earnings per share –
 thebe                                                 6.5            8.1           (20%)
 Headline earnings per share -
 thebe                                                 6.5            9.1           (29%)
 Net cash flows generated from
 operating activities                                  359            162            197
 Cash and cash equivalents at
 end of the period                                       6           (88)             94

 Total operations including continuing and discontinued operations
 Basic & diluted earnings per
 share – thebe                                         5.2         (25.3)          (121%)
 Headline & diluted headline
 earnings per share - thebe                            6.5         (15.3)          (142%)

Financial highlights

We are proud to report that the Group achieved its first profit since 2016 as the benefits from
restructuring the business, following the exit from underperforming investments, continue to be

Group revenue decreased by 1.7% to BWP 5 331 million (2020: BWP 5 421 million) mainly as a
result of negative volume growth in Botswana due to the impact of the COVID-19 pandemic on
the economy and consumer spend. The Rest of Africa revenue increased by 2.2% to BWP 1 186
million (2020: BWP 1 160 million) driven by inflationary increases in Zimbabwe and Zambia which
were further offset by negative fluctuations in currency exchange rates.

Total operating costs were reduced by 7.2% resulting in an 8.7% increase in EBIT from BWP
208,0 million to BWP 226,2 million. EBIT margins improved from 3,8% to 4,2%.

The increase in the effective tax rate is primarily due to last year’s losses related to the divestiture
of the South African operations sold in 2020.

The Group has managed its cash resources and liquidity prudently over the course of the COVID-
19 crisis with a reduction of BWP 55.4 million in net debt, including the debt disclosed in 2020
under discontinued operations.

All remaining assets and liabilities relating to the discontinued operations were transferred to
continuing operations at the end of the 2021 financial year and will be realised in the ordinary
course of business.

The Board has considered it prudent not to declare a dividend for the period under review (2020:

This short form announcement is the responsibility of the Board and is a summary of the
information in the full announcement available on the BSE’s X-news and on the JSE’s SENS at and on the Group’s

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 Company’s Sponsors during standard office

Audit opinion
The Group’s annual financial statements have been audited by Mazars who issued a qualified
opinion where the current period’s financial statements is modified only for the possible lack of
comparability of the results of operations of the comparative year with the current year. This was
due to Mazars being appointed auditors after the FY2019 financial year and they were unable to
observe the counting of physical inventories at June 2019. As a result of this matter, Mazars was
unable to determine whether any adjustments might have been necessary in respect of the cost
of goods sold for FY2020. Mazars’ audit report is published on X-News & SENS simultaneously
with this abridged release of results. This abridged financial information, has not been reviewed
by the Group’s external auditor, and has been extracted from the audited annual financial

The Company has a primary listing on the Botswana Stock Exchange and a secondary listing
on the JSE Limited.

22 September 2021

BSE Sponsoring Broker                                                           JSE Sponsor
Stockbrokers Botswana Limited                                                   PSG Capital

Date: 22-09-2021 09:00:00
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