Simbisa Brands, a number one meals franchise operator, confronted important financial challenges in Zimbabwe and Kenya, together with transition issues within the banking sector following the introduction of the brand new Zimbabwe Gold (ZiG) forex on April 5, 2024.

The forex transition initially introduced stability however was adopted by teething issues that negatively impacted volumes within the final quarter, the Victoria Falls Stock Exchange listed firm mentioned in its 2024 annual report.

“The teething and transition problems experienced by the banking sector arising from the currency transition negatively impacted volumes in the last quarter,” chairman Addington Chinake mentioned.

Simbisa Brands reported a 6% income enhance for the 12 months ended June 30, 2024, amidst important financial challenges in Zimbabwe and Kenya.

The Group’s working revenue earlier than impairment, depreciation, and amortization decreased by US$1.9 million (-4%), primarily because of the absence of non-recurring Treasury funding earnings, which totaled US$2.8 million within the earlier 12 months.

The group maintained its money circulation from operations, showcasing sturdy money era capabilities. Total complete earnings rose by 6%, indicating preservation of shareholder fairness.

The internet influence of subsidiary disposals was US$0.08 million, comprising a US$5.9 million revenue on disposal, partially offset by a US$5.39 million mortgage impairment provision.

The Board declared a ultimate dividend of 0.392 US cents per share, payable on November 7, 2024, bringing the entire dividend to 1.012 US cents per share.

Simbisa Brands plans to speculate US$17.8 million in opening 36 new shops and revamping 36 current ones within the monetary 12 months 2025. This funding goals to drive progress and strengthen market presence.

Chinake added that the group’s operations remained delicate to fluctuations in change charges inside the multi-currency basket. Additionally, the El Niño-induced drought affected uncooked materials costs, equivalent to soya and maize.

In Kenya, forex devaluation, flooding, and anti-tax riots disrupted enterprise operations. Although the Kenyan shilling has stabilised since March 2024, the sooner depreciation strained client buying energy and elevated operational prices.

“In Kenya, the financial and political atmosphere has been notably difficult as this market skilled extreme enterprise disruption because of forex devaluation, flooding and prolonged anti tax riots.

“The Kenyan shilling has since stabilised and strengthened since March 2024, because of tighter financial insurance policies and easing world pressures on this market.

“However, this stabilisation followed a period of significant depreciation, which had already exerted considerable strain on consumer purchasing power and increased our operational costs,” the corporate famous.

Chinake expressed gratitude to the manager and administration groups and workers for his or her dedication and laborious work, reaffirming the group’s dedication to executing its progress technique.