Simbisa Brands H1 2022 FX gains surge to US$5.8m vs US$2.5m year prior
Simbisa Brands H1 Dec 2021 earnings in ZM$ were up 153% against an inflation rate of 61%. In US$ terms earnings were US$6.9m up from US$3.6m in H1 2021.
Highlights:
- FX gains increased in H1 2022 to US$5.8m compared to US$2.5m in H1 2021.
- H1 Dec 2021 sales were up 109% against inflation of 61%.
- Operating margins declined marginally to 10% from 13% year prior.
- A high long-term debt/equity ratio of 86%. Interest cover of 7.1 times.
- Despite Covid-19 limitations, the group grew the number of restaurants (up to 47) together with a 53% increase of delivery sales.
- Management has a positive outlook as the group continues its ongoing investment programme.
FX gains are important. Can they be sustained?
Sign up to The Investor Mailing List to receive equities reports for listed companies in Sub-Saharan African markets in your email inbox and to AfricanFinancials’ Equity Valuation Insights LinkedIn page for access to African stock market valuation insights, annual and earnings reports.
About the Author: Hartland-Peel Africa Equity Research
Sub-Saharan Africa ex SA: Equity, debt and FX research covering sixteen countries and advising institutional investors. Proprietary data base of sixteen African stock markets, 250+ companies which is one of the most extensive and complete. New issues, IPO’s and distribution of equity on privatisation. Development of lending and corporate finance opportunities for the bank, privatisation and asset management. An ‘A’ rated equity analyst by South African institutional investors as polled by the Financial Mail in 1998 and 1999.
