Simbisa Brands Limited (‘Simbisa’ or the ‘Group’) hereby issues the trading update for the First Quarter ended 30 September 2025.
TRADING ENVIRONMENT
The decentralised, brand-focused model introduced in Zimbabwe and Kenya is already delivering positive results. Renewed focus and energy from local Management Teams have led to marked improvements in both customer service and financial performance. Our revised pricing strategy, featuring substantial reductions on several key menu items, has successfully stimulated growth in customer volumes, more than compensating for the softer gross profit margins.
The Group’s overall performance has been further buoyed by favourable macroeconomic conditions across our markets. Improved consumer demand has been supported by stable currencies, favourable weather patterns and strong commodity prices.
We continue to observe a notable shift in consumer behaviour, with increasing preference for convenience reflected in the strong growth of our delivery segment. The Group is actively capitalising on this trend through our ongoing digitisation initiatives, which are driving efficiencies and expanding our reach. At the same time, we remain focused on increasing walk-in traffic through targeted marketing campaigns, promotional activity and our extensive store refurbishment programme, aimed at enhancing the in-store customer experience. Our strategy is to achieve balanced and sustained growth across both delivery and walk-in channels.
We remain vigilant in managing inflationary cost pressures, particularly those related to our input prices, rising energy costs and the knock-on effects of recent tax legislation changes. Cost containment efforts are ongoing to preserve margins and protect long-term profitability.
GROUP PERFORMANCE UPDATE FOR THE QUARTER
The Group delivered a 13% year-on-year increase in revenue for Q1 FY2026 to USD 84m, supported by a 9% growth in customer volumes to 16.8m and a 4% rise in average spend to USD 5,01.
Between 30 September 2024 and 30 September 2025, Simbisa added a net total of 20 new counters. In alignment with our customer-centric strategy, the Group has shifted its focus toward modernising the existing store network to elevate the customer experience and maintain globally competitive brand standards. As at 30 September 2025, the Group operated a total of 733 outlets, comprising 607 company-owned and 126 franchised counters.
ZIMBABWE
Revenue grew by 16% year-on-year in Q1 FY2026 to USD 61.1m, supported by a 9% increase in customer volumes to 13.2m and a 6% rise in average spend. Significant improvements in customer service have strengthened brand loyalty and encouraged repeat visits. The uplift in average spend was primarily driven by increased delivery orders, which grew 74% year-on-year in Q1 FY2026.
The store network expanded by a net total of 8 new counters between 30 September 2024 and 30 September 2025, including 22 store openings and 14 store closures, to close with 338 counters trading at the close of Q1 FY2026. During the same period, 6 counters were refurbished as part of the infrastructure upgrade programme.
Simbisa Zimbabwe continued to face margin pressures, emanating from inflationary cost increases whilst also absorbing the impact of the Fast-Food tax. Strict cost management measures are being implemented, with a focus on energy efficiency, maintenance control and optimising staffing structures to preserve profitability.
KENYA
In Kenya, customer volumes grew by 9% year-on-year to 3.3m, offsetting a 3% decline in average spend to USD 6,43 and resulting in a 6% increase in revenue to USD 21m. The drop in average spend reflects heightened price sensitivity, to which Simbisa Kenya responded by introducing more affordable value-meal options. This impacted transaction value despite a growing contribution from deliveries, which accounted for 24% of revenue in Q1 FY2026, up from 19% in Q1 FY2025, driven by a 56% year-on-year increase in delivery volumes.
Store expansion in Kenya continued, though at a slower pace, as the focus shifted towards capital investment and driving footfall into the existing store network. During the 12 months to 30 September 2025, the business recorded 5 new store openings and 6 closures, ending the period with 252 counters. Additionally, 6 counters were refurbished over the same period.
Simbisa Kenya experienced inflationary cost pressures during the Quarter; the impact of these cost increases, coupled with lower menu pricing, led to softer gross profit margins. However, revenue growth, supported by disciplined cost control measures, helped mitigate the margin pressure. As a result, the business achieved an improvement in operating profit margins and delivered strong overall growth in profitability.
ESWATINI
The positive momentum in operational performance seen in the second half of FY2025 carried through into Q1 FY2026, supported by stable economic conditions, a strengthened customer-centric strategy and the leadership of a strong new Management Team. Revenue grew by 10% year-on-year to USD 1.5m, driven by a 9% increase in customer volumes to 293k and a modest 1% uplift in average spend to USD 5,05.
Although margin pressures arising from the Group’s value-driven pricing strategy and persistent inflationary input costs moderated bottom-line growth, the market nonetheless delivered an increase in profitability.
OUTLOOK
Looking ahead, the Group remains focused on accelerating its customer-centric growth strategy through continued investment in digital transformation and service excellence. Enhanced digitisation efforts will improve operational efficiency and customer convenience, while also supporting cost-saving initiatives.
The Group also plans to expand its footprint, with a net of 66 new stores in the pipeline through to the end of FY2026. This includes the exciting launch of our newest brand, Pastino, with 2 outlets scheduled to open in Harare in 2H FY2026.
On the cost management front, we are actively driving efficiencies through our digitisation journey, solarisation pilots and optimising staffing structures under the new decentralised, brand-led operating model. These efforts are expected to support sustainable margin improvement and long-term profitability.
B DIONISIO
GROUP CHIEF EXECUTIVE OFFICER
14 NOVEMBER 2025
