Chairman’s Statement

Overview

During the six months ended 31 December 2025, the Group delivered a strong performance despite the varied and often challenging economic conditions across its core markets. While strong commodity prices, currency stability and contained inflation provided some macroeconomic support, elevated taxation and living-cost pressures continued to constrain consumer disposable incomes across all markets. Against this backdrop, the Group’s customer centric, brand-focused strategy continued to drive growth, underpinned by compelling value propositions, expansion of delivery channels and disciplined cost containment. Solid growth in customer volumes, sustained investment in the store network and the benefits of the decentralised, brand-led operating model translated into strong revenue growth, improved operating profitability and enhanced cash generation in H1 FY2026, which bodes well for the remainder of the financial year.

The Group delivered 16% revenue growth in H1 FY2026 compared to the prior year, underpinned by a 10% increase in customer volumes and a 6% improvement in real average spend. Operating profit increased by 27% year-on-year, despite aggressive promotional activity and the absorption of the new fast-food tax in Zimbabwe, reflecting the benefits of rigorous cost discipline and enhanced supplier engagement during the period under review.

Simbisa continued to expand its footprint and strengthen market share through the net addition of 14 new stores between 31 December 2024 and 31 December 2025. Ongoing investment in the refurbishment and upgrade programme resulted in 21 stores being refurbished over the same twelve-month period. To minimise disruption to trading and maintain customer convenience during refurbishments, temporary food trucks were deployed at affected sites.

Market Performance

Zimbabwe

Between July and December 2025, Zimbabwe’s economic environment was characterised by relative currency stabilisation following continued monetary supply tightening, which reduced the extreme exchange rate volatility seen in prior periods. Liquidity constraints persisted, however, limiting consumer spending power and maintaining pressure on demand in the formal sector. Taxation and cost pressures remained elevated, with the Fast-Food Tax and Intermediated Money Transfer Tax (IMTT) continuing to weigh on the business, while ongoing power supply disruptions increased operating costs.

The Zimbabwean market delivered strong revenue growth of 19% year-on-year, underpinned by a 10% increase in customer volumes compared to the prior year, with 27.2 million customers served in H1 FY2026. Customer growth was driven by enhanced customer service, a competitive pricing strategy and the continued expansion of delivery channels. Delivery orders grew 74% year-on-year, supporting a 9% increase in overall average spend over the same period, which mitigated the impact of the Company absorbing the Fast Food tax.

The market continued to expand its footprint into prime locations while also renovating and upgrading its aging stores. Between 31 December 2024 and 31 December 2025, the Zimbabwean market refurbished 10 stores, opened 11 new stores and closed 10 stores, ending the period with 340 counters as at 31 December 2025.

Whilst sacrificing some gross profit margin due to elevated input costs and the absorption of additional taxes, Simbisa Zimbabwe still managed to improve operating margins in H1 FY2026 compared to the prior year. This performance was driven by rigorous cost containment initiatives, enhanced supplier engagement and the implementation of the decentralised, brand focused operating model, which enables sharper cost control and clearer identification of savings opportunities.

Kenya

The trading environment in Kenya remained challenging but broadly stable during the H1 FY2026 period, characterised by subdued inflation, cautious consumer sentiment and intermittent political unrest. Higher living costs and ongoing fiscal consolidation continued to constrain disposable incomes and reinforce valuedriven consumer behaviour. Political protests during the period intermittently disrupted trading in some stores in the urban centre, whilst also affecting consumer confidence. Against this backdrop, the Central Bank of Kenya maintained a supportive monetary policy stance, contributing to currency stability and providing a more constructive foundation for demand recovery over the medium term, despite persistent fiscal and socio-political pressures.

Despite a challenging trading environment, Simbisa Kenya achieved a robust 12% increase in customer volumes in H1 FY2026 compared to the prior year. US Dollar average spend declined by 4% year-on-year, reflecting intensified value-focused promotional activity, which nonetheless supported an overall 8% year-on-year increase in US Dollar revenue. Growth in delivery channels remained strong, with delivery orders increasing by 60% in H1 FY2026 versus the prior year. Through disciplined cost containment and improved operating efficiencies, operating margins were maintained in line with the prior year.

The Kenyan operations expanded its footprint through the opening of 9 new outlets between 31 December 2024 and 31 December 2025, while 5 outlets were closed, resulting in a total of 259 active stores as at 31 December 2025. In addition, 11 stores were refurbished during the period.

Eswatini

In Eswatini, the operating environment was influenced by a strengthening currency, which appreciated by 12% against the US Dollar between 31 December 2024 and 31 December 2025. While this supported a moderation in inflationary pressures, economic growth and household disposable incomes remained constrained, reinforcing value-driven consumer purchasing behaviour.

Through compelling value-led promotions, intensified marketing activity and improved customer service, the market sustained a positive growth trajectory, delivering a 23% year-on-year increase in US Dollar revenue. This performance was driven by an 11% increase in customer volumes and an 11% improvement in average spend.

In support of continued market share growth, two new stores were opened in Q2 FY2026, with their full contribution expected to be realised in H2 FY2026.

Franchised Markets

Franchised markets continued to defend and grow market share, with a net addition of 7 counters between 31 December 2024 and 31 December 2025. Strategic initiatives during the period focused on strengthening brand awareness through intensified marketing activity, operational restructuring and enhancements to the customer experience, including store upgrades and improved service standards.

As at 31 December 2025, the Group operated 130 active franchised stores, with the portfolio comprising: DRC 37, Zambia 31, Malawi 21, Ghana 18, Mauritius 16 and Namibia 7.

Sustainability: Investing in our communities

The Group remains focused on reducing environmental impact, strengthening inclusive economic participation, and delivering meaningful social value across its markets. In FY2026, Simbisa is deepening this impact through targeted initiatives that extend beyond its restaurants into the communities it serves: the Tag Rugby programme will be expanded to grassroots level, introducing the sport to underserved areas and broadening access for young people previously excluded, while the Group is also supporting the fight against gender-based violence through the “We Are One” Fund. Together, these initiatives reaffirm Simbisa’s role as a responsible corporate citizen, advancing sustainable development and creating shared values with stakeholders across the our value chain.

Financial Highlights

The decentralised, brand-focused model introduced in Zimbabwe and Kenya and continued momentum in Eswatini’s growth strategy yielded positive results in the half year period under review. Despite continued challenges in the trading environment, the Group delivered solid results:

• Revenue was up 16% year-on-year buoyed by a 10% growth in customer volumes and a 6% increase in average spend
• Operating profit grew 27% year-on-year
• Profit before tax increased 76% year-on-year
• Cash generated from operations increased by 24%, representing a 115% operating profit to cash conversion rate
• The interim dividend grew 51%

Interim dividend

The Board resolved to declare an interim dividend of 0,934 US cents per share. Furthermore, the Board approved a dividend of USD 262 540 to the Simbisa Employee Share Trust. The dividend will be payable in United States dollars on or about 20 March 2026 to shareholders registered in the books of the Company close of business on 13 March 2026. The last day to trade cum-dividend is 11 March 2026, and the ex-dividend date is 12 March 2026.

Looking Ahead:

The trading environment is expected to remain broadly stable through to the financial year end, through anticipated currency stability, firm commodity prices and a strong agricultural season in Zimbabwe. However, additional fiscal tightening and tax increases introduced from January 2026 in Zimbabwe, are expected to place further pressure on consumer disposable incomes.

The Group will continue to pursue a customer centric, brand focused growth strategy, anchored in service excellence and supported by value led promotions, targeted new product development and ongoing store refurbishments. Delivering a fast, varied and convenient dining experience remains a core priority, underpinned by further expansion of delivery services, increased rollout of drive through formats and the introduction of new brands to broaden the portfolio and appeal to a wider range of customer preferences. Accelerated digitisation initiatives will enhance operational efficiency and customer convenience, while also supporting sustainable cost optimisation.

The Group will continue to expand its footprint, with 31 new stores planned for rollout over the next six months to the financial year end. Concurrently, 21 existing stores are scheduled for refurbishment during the same period. Cost containment remains a key focus to ensure that top line growth is effectively translated into improved profitability. The Group is actively driving efficiencies through its digitisation initiatives, continued supplier engagement, solarisation pilots and the optimisation of staffing structures under the new brand focused operating model. These initiatives are expected to support sustainable margin enhancement and long-term profitability.

Appreciation

Simbisa Brands remains firmly committed to delivering long term value for all stakeholders. The Group continued to deliver sustainable growth in H1 FY2026, while offering customers a world class dining experience, through strategic agility, service excellence and a strong operational focus. We extend our sincere appreciation to our dedicated teams and loyal customers for their continued support, and to the Board of Directors for their strategic guidance. We also thank our franchise partners, lenders, suppliers and all stakeholders for their ongoing collaboration and valued partnerships.

ABC Chinake
Independent Non-Executive Chairman
Harare

26 February 2026

Related Download

Simbisa Brands – Unaudited Abridged Financial Results for HYE 31 December 2025.pdf

Simbisa Brands – Unaudited Abridged Financial Results for HYE 31 December 2025 Short Form.pdf