Chairman’s Statement
Simbisa Brands Limited delivered another year of resilient growth, supported by continued customer momentum across the Group’s key markets. Customer volumes increased by 11% during the year, reflecting the positive response to stronger value propositions, improved food quality and enhanced service standards implemented across the Group’s Brands.
The operating environment however, remained demanding. Higher employee costs, increased taxation and continued pressure from energy, distribution and input costs weighed on operating expenses, while the Fast Food Tax and intermittent power supply disruptions presented additional challenges in Zimbabwe. In Kenya, periods of political unrest affected trading at selected locations. Despite these pressures, the Group maintained operating margins through disciplined cost management, procurement efficiencies and improved operational execution.
The Group’s strategic focus during the year remained centred on delivering greater customer value without compromising product quality or service. Continued investment in menu innovation, delivery, digital ordering and customer experience supported this objective in response to evolving consumer preferences.
These initiatives translated into strong financial performance. Group revenue increased by 20%, supported by 11% growth in customer volumes and an 8% increase in real average spend. Zimbabwe delivered revenue growth of 23% and contributed 72% of Group revenue, while revenue from the Region increased by 13%. Group operating profit increased by 28%, with margins maintained despite cost pressures.
The year’s performance demonstrates the Group’s value proposition and the benefits of disciplined execution, with customer growth driving stronger earnings despite the challenging operating cost environment.
The Group continued to invest in its long-term growth through selective network expansion and improvement of the existing store network. A net 29 new stores were added during the year to close the year with 759 stores, while 25 outlets were refurbished. This improved customer access and enhanced the quality of the Group’s trading network.
Simbisa continued to focus and improve its sustainability agenda by reducing the negative environmental impact of its operations and supporting the communities in which it operates.
Initiatives included increased use of biodegradable packaging in Zimbabwe and Kenya, further investment in solar energy solutions and expansion of the electric vehicle delivery fleet. Community investment remained focused on practical, brand-led initiatives in education, youth development, and community welfare.
Market Performance
Zimbabwe
Zimbabwe delivered strong operational and financial performance during FY2026. The market served a record 53.6 million customers during the year, representing an 11% increase on the prior year, while revenue increased by 23%.
Customer growth was as a result of deliberate focus on compelling value propositions, improved food quality and enhanced service standards. Delivery orders increased by 75% compared to the prior year, contributing to an 11% increase in average spend.
The market continued to invest in network growth and improving the quality of its existing stores. During the year, Zimbabwe added a net 17 new stores and refurbished 6 existing outlets, ending FY2026 with 352 counters.
Operating profit increased by 39% compared to the prior year, with operating margins reasonably protected despite the impact of the Fast-Food Tax, higher employee costs and elevated energy expenses. USD 2.1 million was paid in Fast-Food Tax for the year. Procurement savings, productivity improvements and disciplined control of operating expenditure enabled the business to absorb some of these pressures while continuing to invest in customer experience and long-term growth.
Kenya
While exchange rate stability in Kenya provided a more supportive macroeconomic backdrop, sustained pressure on household disposable incomes reinforced increasingly value conscious consumer behaviour.
Competitive intensity within the QSR sector remained high, requiring a strong focus on pricing, promotional activity and compelling value propositions to stimulate customer traffic and defend market share.
Customer volumes increased by 14% year on year, while the 3% decline in US Dollar average spend, reflecting the value-led pricing strategy, was more than offset by stronger traffic, resulting in revenue growth of 11%. Delivery channels continued to gain momentum, with delivery orders increasing by 59% compared to the prior year, further extending our customer reach and providing convenience.
Operating profit increased by 16%, ahead of revenue growth, reflecting disciplined cost management and improved operating efficiencies. This resulted in margin improvement despite the highly competitive trading environment.
The Kenyan operations continued to balance selective network expansion with refurbishment of the existing network. During the year, the market added a net 5 new stores and refurbished 19 outlets, closing FY2026 with 257 active stores.
Eswatini
The operating environment in Eswatini remained broadly stable during FY2026, although household disposable incomes remained under pressure.
The Eswatini operations delivered improved trading momentum during the year, with revenue increasing by 24% compared to the prior year.
This growth was supported by a 10% increase in customer volumes and a 12% increase in real average spend. Operating profit increased by 4% year on year.
The improvement in customer traffic reflected sustained progress in food quality, service standards and the overall customer experience, supported by focused marketing and relevant value offerings. The contribution from 3 stores opened during the financial year was also positive.
Franchised Markets
The franchised market portfolio continued to strategically expand during FY2026, adding a net 4 new counters during the year. The markets remained focused on strengthening food quality, supporting local marketing initiatives and pursuing disciplined network growth.
As at 30 June 2026, the Group operated 131 active franchised stores, comprising 37 in the DRC, 31 in Zambia, 21 in Malawi, 18 in Ghana, 17 in Mauritius and 7 in Namibia.
Sustainability: Investing in our communities
The Group remained focused on making meaningful social contributions across the communities it serves. During FY2026, Simbisa supported a range of initiatives centred on education, youth development, inclusion and community welfare, including providing scholarships and school fees assistance, support for vulnerable families, inclusive wellbeing programmes and youth sporting initiatives.
These projects complement the Group’s environmental programmes and reflect Simbisa’s broader commitment to responsible corporate citizenship, sustainable development and the promotion of shared value amongst its stakeholders.
Final dividend
The Board therefore resolved to declare a final dividend of 0.622 US cents per share (prior year: 0.453 US cents per share – total dividend for the year: 1.556 US cents per share). In addition, the Board approved a dividend of USD 174,797 to the Simbisa Employee Share Trust.
The dividend will be payable in United States Dollars on or about 6 November 2026 to shareholders registered in the books of the Company at the close of business on 16 October 2026. The last day to trade cum dividend is 14 October 2026, and the ex-dividend date is 15 October 2026.
Looking Ahead:
The Group enters FY2027 with positive customer momentum and a stronger operating base. While the outlook remains positive, consumer spending is expected to remain constrained and the Group will continue to navigate elevated taxation, employee costs, input inflation and climate-related risks, all of which may place additional pressure on operating margins.
Our strategic priorities remain unchanged. We will continue to focus on delivering service compelling customer value while maintaining high standards of food quality and service. Investment in delivery, digital ordering, drive thru formats, selective network expansion and store refurbishments will continue where these initiatives enhance convenience, strengthen our brands and generate optimal returns.
Protecting profitability will require continued discipline across procurement, production and operating expenditure. The Group will remain focused on extracting efficiencies from its cost base while strengthening its supply chain resilience and investing selectively in alternative energy solutions where these deliver sustainable operational and financial benefits.
The Board believes that the Group’s strong brands, customer focused strategy and disciplined approach to execution provide a sound foundation for continued profitable growth and sustainable long term value creation.
Appreciation
On behalf of the Board, I would like to express my sincere appreciation to our management team and employees across the Group for their commitment, resilience and dedication throughout the year. Their continued focus on serving our customers and strengthening our brands remains central to the Group’s success.
I also extend my gratitude to our customers for their continued trust and loyalty, and to my fellow Board members for their guidance and stewardship during the year.
Finally, I would like to thank our franchise partners, suppliers, lenders, shareholders and other stakeholders for their continued confidence and valued partnership. Their support remains integral to Simbisa’s ability to deliver sustainable long-term growth and create value across the markets in which we operate.
A.B.C. Chinake
Independent Non-Executive
Chairman
Harare
29 September 2026
