Choppies Enterprises Limited has warned shareholders to expect a sharp decline in profit for the year ended 30 June 2025, with profit after tax projected to fall between 25% and 35% compared to last year, dragged down by the sale of its Zimbabwe business and higher operating costs.
Choppies sold its Zimbabwe operations to Pintail Trading for $260,000 (P3.8 million), 12 years after initially buying 10 SPAR outlets from SAI Enterprises (Pvt) Limited for $22.5 million to kickstart its Zimbabwe operations.
In a trading statement, the retailer said profit after tax from total operations is expected to range between P88 million and P102 million, down from P136 million in FY2024. From continuing operations, profit is anticipated between P141 million and P161 million, a decline of up to 28% from P196 million previously.
The results were hit by a series of one-off items, including foreign exchange losses on lease liabilities, higher diesel costs due to load-shedding, and the absence of last year’s gain on the sale of its Mediland unit. The reclassification of foreign currency translation and hyperinflationary reserves following the Zimbabwe disposal also weighed heavily.
The Group’s effective tax rate jumped to 31% from 15% last year, further eroding the bottom line. Losses in Namibia for which no deferred tax was raised, and a non-deductible loss on the Zimbabwe sale contributed to the higher rate.
Despite the profit slump, Choppies expects underlying operations to show resilience. Adjusted EBIT is forecast to rise between 18% and 28% to as much as P362 million, while adjusted EBITDA is projected between P608 million and P666 million, up from P574 million in 2024.
Earnings per share (EPS) are expected to drop to between 4.9 thebe and 5.7 thebe, from 7.6 thebe last year. However, headline earnings per share (HEPS), which exclude certain one-off items, are expected to improve by up to 24% to 7.8–8.4 thebe.
The company said it will continue to focus on consolidating profitability in Botswana, Namibia, and Zambia, completing turnarounds at Liquorama and its hardware division, maintaining financial discipline, and driving its ESG initiatives.
The board expressed confidence in Choppies’ long-term outlook, stating the group is “positioned for sustainable growth and improved shareholder returns.” Full-year results are expected to be published around 22 September 2025.