Simbisa Brands Limited (‘Simbisa’ or the ‘Group’) hereby issues the trading update for the Third Quarter ended 31 March 2026
TRADING ENVIRONMENT
Consumer demand remained resilient during the quarter, supported by currency stability, favourable weather conditions and strong commodity prices across key operating markets. Enhanced product quality, targeted marketing campaigns and strategic promotional activity contributed to a notable increase in customer volumes compared to the prior year period. Strong growth in delivery volumes was recorded in both Zimbabwe and Kenya, in line with the Group’s strategy of achieving balanced and sustainable growth across both delivery and walk in channels.
The quarter under review was, however, characterised by heightened cost pressures following significant increases in fuel prices from February 2026, driven by global oil supply disruptions associated with ongoing Middle East tensions. In addition to increasing operating costs, these developments have also negatively impacted gross profit margins as suppliers adjusted pricing in response to inflationary pressures. The Group has intensified its focus on managing inflationary cost pressures in order to preserve margins and safeguard long term profitability.
GROUP PERFORMANCE UPDATE FOR THE QUARTER
The Group delivered a 23% year-on-year increase in revenue for Q3 FY2026 to US$85.3mn, supported by a 14% growth in customer volumes to 16.3mn and an 8% increase in average spend to US$5.23.
Between 31 March 2025 and 31 March 2026, Simbisa added a net total of 29 new counters, bringing the total store network to 751 counters, comprising 621 company owned and 130 franchised counters. During the same period, 21 counters were refurbished as the Group continued with initiatives aimed at modernising and upgrading the existing store network.
ZIMBABWE
Revenue grew by 26% year-on-year in Q3 FY2026 to US$61.9mn, supported by a 12% increase in customer volumes to 12.6mn and a 13% increase in average spend. Significant quality improvements, day-specific promotional initiatives and value offering campaigns contributed to growth in customer counts without increases to menu pricing. Innovative product development, basket meal offerings and increased delivery contribution supported growth in average spend. Performance in the delivery segment remained particularly strong, with delivery volumes increasing by 83% in Q3 FY2026 compared to the prior year, supported by a growing delivery fleet and improved zoning efficiencies.
The Zimbabwe store network expanded by a net total of 8 counters between 31 March 2025 and 31 March 2026, comprising 13 store openings and 5 closures, to close the quarter with 342 trading counters. The Pastino brand was successfully launched into the market during the period. In addition, 10 counters were refurbished as part of the ongoing infrastructure upgrade programme.
Simbisa Zimbabwe continued to experience margin pressure arising from fuel price increases and the impact of the Fast Food Tax. Supply chain optimisation and disciplined cost management initiatives are being implemented to preserve profitability, with particular focus on strategic sourcing and improving energy efficiency. The solarisation programme in Zimbabwe remains a strategic priority as the Group seeks to enhance energy security, reduce generator and utility costs and future proof operations against rising energy costs. Rollout continues to be pursued through strategic partnerships under a no capex Power Purchase Agreement structure.
KENYA
In Kenya, significant progress was achieved in growing customer volumes, with volumes increasing by 21% year-on-year to 3.5mn in Q3 FY2026 compared to the prior year period, partially offset by a 5% decline in average spend to US$6.17. Revenue increased by 15% year-on-year to US$21.6mn. Promotional activity and the introduction of additional value meal offerings impacted average spend; however, the resulting growth in customer counts and overall revenue validated the pricing strategy.
Delivery volumes grew by 71% in Q3 FY2026 versus prior year, driven by growth in in-house delivery operations and increased contribution from third party delivery partnerships. The market is now averaging approximately 6,000 deliveries per day, with delivery contribution in key brands approaching the Group’s targeted 30% contribution to total market turnover.
During the 12 months to 31 March 2026, a net total of 8 counters were added to the network, comprising 9 store openings and 1 closure, bringing the total trading counters in Kenya to 259 at quarter end. During the same period, 11 counters were refurbished and upgraded.
Lower average spend together with inflationary cost increases placed pressure on gross profit margins during the quarter. Continued revenue growth, strengthened supply chain management and disciplined cost controls remain key focus areas in preserving operating profit margins and driving overall profitability growth.
ESWATINI
Revenue grew by 26% year-on-year to US$1.4mn, supported by an 8% increase in customer volumes to 268k and a 16% increase in average spend to US$5.31. Growth was driven primarily by network expansion, including the opening of 2 new stores in Q2 FY2026 and the introduction of a Galito’s food trailer in February 2026. Improved brand visibility and promotional activity further supported performance during the quarter.
Margin softness arising from persistent inflationary input cost pressures remains an area of focus. Enhanced cost discipline and supply chain efficiencies continue to be prioritised to ensure strong top line performance translates into improved profitability.
OUTLOOK
In response to prevailing macroeconomic cost pressures, the Group will continue to focus on defending margins through strengthened supply chain management, accelerated solarisation initiatives, efficiencies derived from digitisation and the implementation of strict cost control measures. Sustained top line growth remains central to the Group’s profitability objectives, with new product development, strategic promotional activity and targeted marketing initiatives expected to continue driving performance.
The Group continues to expand its footprint, with 17 new stores currently in the pipeline for Q4 FY2026. This is expected to result in a total of 36 net new stores opened during the 12 months to 30 June 2026.
B DIONISIO
GROUP CHIEF EXECUTIVE OFFICER
15 MAY 2026
