Chairman’s Statement

Overview

The year ended 30 June 2025 presented both challenges and transformative progress for Simbisa Brands Limited (‘Simbisa’ or the ‘Group’). This progress was despite persistent socio-economic volatility in some key markets, inflationary pressure, and shifting consumer behaviours across our markets. The year under review saw the introduction of a number of new taxes in Zimbabwe and Kenya whose effect was to apply further pressure on an already depleted disposable income base of consumers and ultimately negatively affecting the Group’s customer counts. In response, the Group has developed strategies to increase customer counts through product innovation and expansion, with a view of strengthening long-term growth while continuing to improve customer experience. The Group has continued its expansion drive, with forty-seven new counters opened (including franchised markets) and a sharpened portfolio through strategic relocations of certain stores. This strategy has deepened our reach and improved asset quality and consequently resulted in the closure of thirty-one counters (including franchised markets) in the period. Overall, these initiatives resulted in a marginal 4% increase in customer counts which was below internal targets.

Financially, the Group delivered a solid performance, achieving 7% revenue growth despite the volatile environment. Our delivery business also gained significant traction, with the number of deliveries growing by 33% and 42% year-on-year for Kenya and Zimbabwe respectively, as customers are increasingly embracing the convenience of our digital delivery channels and growing fleet.

Customers’ usage of our customer feedback platform grew significantly, and the feedback is welcome and assists in enhancing product and service value proposition to our customers.

The Group remains committed to sustainable operations with continuous improvement in this area being a major focus. The Group now uses 100% biodegradable packaging in Zimbabwe and Kenya. There is an active rollout of solar-powered facilities at our stores, and a deliberate expansion of our Electrical Bike (EV) delivery fleet. It is our stated intention to be a leader in Africa’s QSR sector in the quest for a sustainable, low-carbon future. These initiatives also benefit the communities we serve and will also strengthen Simbisa’s long-term competitiveness.

As at 30 June 2025, the Group operated 604 company-owned stores, having achieved a net addition of 3 stores since June 2024. Additionally, 21 stores were refurbished during the same period as part of our commitment to elevating customer satisfaction through modern and aesthetically refreshed outlets.

Market Performance

Zimbabwe

The Zimbabwean operating environment saw the second half of the financial year characterised by a slowdown in economic growth and a significant shift in the local tax regime. Pleasing though, the market was able to deliver growth through disciplined pricing and customer-centric value offerings. Of note was the introduction of the 1% ‘Fast Food Tax’, levied on all items defined at law as “fast food”, which was effective 1 January 2025. This tax led to an erosion of margins. Simbisa made the conscious decision not to pass the “food tax” onto our customers, and as a result, contributed to the fiscus by paying at least USD0.9 million in Fast Food Tax.

Certain macroeconomic challenges persisted, with local currency devaluation in the first quarter of the year eroding disposable incomes and requiring adaptive strategic interventions. On the energy front, intensified loadshedding impacted cost structures and hence profitability. The Zimbabwe operations responded by increasing its value offering to customers, with price reductions in our key brands and several value deals offered to our customers.

Despite these challenges, the Zimbabwean market recorded a 5% year-on-year revenue growth, primarily driven by a 7% increase in customer count, with 48.7 million customers served during the year. A 2% reduction in average spend was noted, reflecting the Group’s strategic decision to lower prices in response to weakening consumer purchasing power. The market expanded its footprint through new store openings, adding a net total of 3 new counters since July 2024, bringing the total to 335 counters trading at the end of the year, with a total of 13 counters also having been face-lifted during the same period.

A combination of cost containment initiatives, supplier engagement, and enhanced customer-driven promotional activities helped preserve consumer affordability while preserving operating margins and sustaining profitability. We believe these strategies, among others, have set the Zimbabwean market well on a sustainable growth path.

Kenya

Kenya’s operations reported a 12% revenue growth in USD terms for the year, driven by a 20% increase in real USD average spend, despite a 6% decline in customer count. A 33% increase in revenue from deliveries was achieved as management increasingly focused on this channel. The market added 6 new counters since July 2024, with 6 counters being strategically closed. The Kenya market closed the year with 252 operating counters, with 8 stores being refurbished during the same period.

The raft of tax measures implemented by the authorities at the beginning of the year continued to weigh on consumer spending power and operational costs. As reported in the interim report, the socio-economic unrest continued in this period resulting in intermittent protests which disrupted business and caused damage to some of our CBD stores. Management remains confident that customer centric value offerings, delivery coupled with the digitalisation thereof and a focus on improving the ambience of the existing stores will lead the market to success.

Eswatini

Revenue in Eswatini increased by 1% year-on-year in USD terms, with a 4% drop in customer count offset by a 5% increase in real average spend. Despite this, profit margins remained stable year-on-year.

With the market’s performance having stabilised, management believe a strong base is now in place for future expansion of the store network. Refurbishment of stores started shortly after the end of the reporting period.

Sustainability and Community Engagement

The Group remains focused on prioritising sustainability across its operations, innovations and strategic decisions. The Group applies GRI Standards for Sustainability Reporting. Our Sustainability Champions and Management continue to drive the agreed sustainability projects and initiatives, with a keen focus on Sustainable Development Goals as defined in our Group Sustainability Policy which is regularly reviewed.

On 1 February 2025, our Zimbabwe and Kenya markets transitioned to 100% biodegradable paper packaging across all brands demonstrating our commitment to responsible waste management. Kenya’s electric motor bikes delivery fleet grew significantly during the period, and plans to introduce these EV delivery motor bikes in other markets, starting with Zimbabwe are at an advanced stage. These initiatives contribute to the Group’s strategic response to climate change and transition towards a low to ZERO carbon footprint.

Consistent with the Group Sustainability Policy, we also supported the following sectors – education, health, the disadvantaged, youth employment and other public institutions and in the process empowered local communities in the markets we operate in.

Governance

Resignations

The Group announced the departure of the following Board members, who were a key part of our success in the past:

Group Finance Director

Mr. Baldwin Guchu stepped down from his position as Group Finance Director of Simbisa Brands Limited, effective 1 January 2025, to assume the role of Chief Executive Officer for Innbucks Microbank Limited.

Baldwin joined Simbisa in 2018 and has been instrumental in driving the Group’s financial strategy, enhancing operational efficiencies and supporting the Group’s expansion in existing markets as well as capital raising projects.

The Board extends its gratitude to Baldwin for his outstanding leadership and commitment and wishes him the best in his future endeavours.

Independent Non-Executive Director

Mrs. Jaqueline Hussein stepped down from her position as a Non-Executive Director of the Company effective 30 June 2025.

Mrs. Hussein joined the Board in January 2021. She served as a member of the Audit and Risk Committee.

The Board extends its sincere gratitude to Mrs. Hussein for her service, counsel and contributions over the years and wishes her the very best in her future endeavours.

Appointments

The Group in this period, also welcomed the following new leadership talent in finance, legal and secretarial areas:

Appointment of new Group Finance Director

Simbisa Brands appointed Mr. David Takudzwa Mudzengi (CA (Z)) as the Group Finance Director of Simbisa Brands Limited effective 1 February 2025.

David is a Chartered Accountant with extensive experience in financial reporting, corporate finance, management accounting and enterprise risk management. He holds a Bachelor of Commerce Honours in Accounting from National University of Science and Technology. Over his 17-year career, he has served in various leadership roles including as Finance Director of Bakers Inn Sales & Distribution, Chief Finance Officer at Ecocash Holdings, Finance Executive at First Mutual Health and as a Senior Advisor – Transaction Advisory services at Ernst and Young. His accomplishments include leading complex corporate restructurings, developing fintech and insurtech business models, and overseeing multimillion-dollar transactions in the insurance, health and asset management industries.

David’s extensive experience and proven leadership will be invaluable as Simbisa Brands Limited continues its growth trajectory.

The Board congratulates David on his appointment and is confident in his ability to make a meaningful contribution to the Group’s success.

His appointment will be tabled for ratification at the Company’s 10th Annual General Meeting in November 2025.

Appointment of Independent Non-Executive Director

Simbisa Brands appointed Mrs. Thembiwe Chikosi Mazingi as a Non-Executive Director of the Company with effect from 1 July 2025. She has also been appointed to the Audit & Risk Committee effective the same date. Mrs. Mazingi is a seasoned legal practitioner with over four decades of experience and currently serves as Senior Partner at Coghlan, Welsh & Guest. She has extensive expertise in corporate law, taxation, property law and conveyancing as well as regulatory compliance. She holds an LLB, BL and MBA from the University of Zimbabwe and has pursued specialist qualifications in advanced taxation and international tax law.

She currently serves on the boards of Axia Corporation Limited, African Century Limited and Proplastics Limited. In addition, she is a member of the Law Society of Zimbabwe, the International Bar Association and the International Fiscal Association.

The Board welcomes Mrs Mazingi and looks forward to her contribution to the Company’s governance and strategic oversight.

Her appointment will be tabled for ratification at the Company’s 10th Annual General Meeting in November 2025.

Appointment of new Company Secretary

Simbisa Brands Limited confirmed Ms. Fadeke Hatineti Obatolu as the Company Secretary, effective 2 January 2025.

Fadeke has been serving as the Acting Company Secretary since 1 October 2024, during which time she has effectively managed the Company’s compliance and governance responsibilities. She also currently serves as the Group Legal Advisor for Simbisa Brands Limited, a role she has held since June 2017, overseeing legal compliance, governance, strategic legal initiatives and matters related to intellectual property rights protection. Her experience in these areas has made her an invaluable member of the leadership team.

She holds a LLB degree from Rhodes University, an MBA from Nottingham Trent University along with training from the University of Stellenbosch Business School’s Management Development Programme.

The Board warmly congratulates Fadeke on her confirmation and looks forward to her continued contribution to the Company in her expanded role.

Board committees

All the Board Committees were fully functional, met regularly and discharged their fiduciary duties in accordance with the Board Policies in the reporting period.

Financial Highlights

Despite the challenges encountered during the year, the Group produced a strong set of results:

• Revenue grew by 7%, despite economic headwinds.
• Operating profit before impairment, depreciation and amortization increased by 8.8% year-on-year.
• Cash generated from operations improved by 10% to USD 51 million, translating to a 113% conversion rate of operating profit to cash.
• There was a notable decline in the profit on translation of foreign subsidiaries to almost USD Nil. This change was driven by the stability of the Kenyan Shilling since the beginning of the current year and the prior year disposal of subsidiaries in Zambia, Ghana, and Mauritius, which had previously contributed substantial currency translation gains and losses.

Final dividend

The Board has resolved to declare a final dividend of 0.453 US cents per share [interim 0.62 US cents per share – total dividend for the year 1.073 US cents per share]. Additionally, the Board approved a dividend of USD 127,335 to the Simbisa Employee Share Trust. The dividend will be payable in United States dollars on or about 7 November 2025 to shareholders registered in the Company’s books as at the close of business on 17 October 2025. The last day to trade cum-dividend is 15 October 2025, and the ex-dividend date is 16 October 2025.

Looking Ahead:

While external uncertainties remain part of the landscape, the Group’s performance this year confirms the robustness of our strategy. Simbisa’s ambition remains clear, that is, to transform Simbisa from a leading quick-service restaurants operator into Africa’s most trusted and digitally enabled quick service restaurant, whose DNA is – resilient, sustainable, and customer-centric.

In addition, the following areas of focus will be key during the ensuing year and beyond:

• Continuous enhancement of our value proposition by introducing value-led promotions to bring the customers back to our stores and cushion our customers against shrinking disposable incomes, whilst preserving margins.
• Our teams will become more brand focused, in order to give our customers unique experiences across all our brands. We will be rolling out an operational re-structure that affords each brand team autonomy to enhance focused and agile decision making, starting with the Zimbabwean market in the new year.
• Further embed Sustainability ethos in all that we do, with a keen focus on clean energy, sustainable waste management and investment in the community, directly linked to our key focus on Sustainable Development Goals being Zero Hunger, Quality Education, Clean Water and Sanitation and Good Health and Wellbeing.

With the above in place among other initiatives, we are confident of building a sustainable business capable of delivering long-term value to customers, employees, and shareholders alike.

Appreciation

Simbisa’s achievements are as a result of people, namely – our teams whose passion brings our brands to life; our customers whose loyalty energises us; our partners and suppliers who share our resilience; and our shareholders who trust in our vision. Together, we are not only building a profitable enterprise but shaping a Pan-African brand whose sustainability and profitability shall endure for generations. I thank my fellow Board members, the Executive Management Team and all our staff members for their continued resilience in driving Simbisa Brands forward.

ABC Chinake
Independent Non-Executive Chairman
Harare

30 September 2025

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Simbisa Brands Limited – Abridged Financial Results for FYE 30 June 2025