Choppies posts 31% surge in full-year revenue

Choppies, one of the largest grocery retailers in Southern Africa, has had a remarkable financial year, posting a 31.7% surge in revenue. The company's CEO, Ramachandran Ottapathu, expressed his satisfaction with the performance of the business, especially considering the challenging economic landscape. Despite a 20.7% decrease in headline earnings per share, Choppies managed to navigate through the difficulties and achieve substantial growth. Ottapathu attributed this success to the acquisition of the Komuso Group, which allowed for consolidation within the company. He also highlighted the growth in regions like Zambia and Namibia, demonstrating the company's resilience and ability to thrive in various markets. The formula for Choppies' revenue growth, according to Ottapathu, lies in their operational efficiency and strategic positioning in sub-Saharan Africa. By focusing on retail sales and optimizing their gross profit, Choppies has been able to stay competitive and continue to expand their business. Looking ahead, Ottapathu sees significant growth potential in their current markets, with plans to further develop their presence in Zambia and Namibia. The Camuso acquisition has played a crucial role in diversifying Choppies' retail portfolio, including segments like liquor, hardware, and building materials. Ottapathu acknowledged the competitive pricing environment in which Choppies operates, emphasizing the importance of innovation and supply chain optimization to maintain competitiveness. Despite the challenges of finding suitable businesses for acquisitions, Ottapathu remains confident in identifying strategic opportunities to enhance Choppies' growth. When discussing Zimbabwe, Ottapathu recognized the market's complexity but reiterated the company's commitment to exploring options and assessing the business landscape. Succession planning was also addressed, with Ottapathu expressing confidence in the young team's ability to lead Choppies into the future. Overall, Choppies' performance in the face of adversity showcases their resilience and strategic vision for sustainable growth in the retail sector.