Choppies made P9 billion in revenue

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Botswana’s retail giant Choppies Enterprises Limited has announced a strong performance for the financial year ended June 30, 2025, reporting more than P9 billion in group revenue and a gross profit of nearly P1.9 billion. The numbers underscore Choppies’ continued dominance in the southern African retail sector — but a deeper look at the results reveals a more complex story beneath the headline growth.

Sales Surge Across Stores

According to the company’s audited financials published on the Botswana Stock Exchange (BSE), Choppies achieved retail sales of P9.1 billion, marking a solid increase from the previous year. Its gross profit margin also improved slightly to 20.8 %, signaling stronger efficiency in managing supply chains and pricing strategies despite regional inflation pressures.

This growth was fueled by new store openings, price adjustments, and an improved product mix that helped offset rising costs. The Botswana operations remained the primary driver of group revenue, with the company consolidating its market share locally while maintaining a presence in other markets across the region.

The Cost of Expansion

While the top-line growth paints a positive picture, profitability didn’t keep pace.
Choppies’ operating profit slipped to P318 million, down from P335 million in the previous year, as total operating expenses rose by nearly 22 %.

This spike in expenses came from several areas — increased staffing and logistics costs, higher inflation-driven supplier prices, and costs related to the sale of the company’s Zimbabwe operations. The company also cited losses from its Namibian operations and tighter margins within its Liquorama liquor division.

Profit Slows, But Strategy Remains Intact

The result was a profit before tax of P218 million and a profit after tax of P151 million, representing a decline compared to the previous financial year. Including discontinued operations, Choppies’ total profit stood at P95 million.

Management attributed the weaker net result to “short-term growing pains” tied to restructuring and regional consolidation. By exiting loss-making markets such as Zimbabwe, Choppies aims to sharpen its focus on core, profitable regions — particularly Botswana, where its brand strength remains unmatched.

Balancing Growth and Efficiency

The challenge ahead for Choppies is clear: sustaining double-digit revenue growth while reining in operating costs and improving overall profitability. Analysts suggest that if new stores reach maturity and cost structures stabilize, Choppies could unlock stronger returns in the next fiscal year.

Still, the company’s P9 billion revenue milestone reflects a significant achievement in Botswana’s retail landscape. It reinforces Choppies’ position not just as a grocery chain, but as one of the region’s largest employers and economic contributors.

Key Takeaway:
Choppies is selling more and managing its supply chain better — but rising costs are limiting how much of that growth turns into profit. The next phase of its strategy will determine whether it can convert impressive sales into sustainable long-term earnings.

Sources

Choppies Enterprises Limited – Abridged Audited Group Financial Statements for the Year Ended 30 June 2025

• Published on the Botswana Stock Exchange (BSE) disclosure platform.

• Direct PDF link: https://apis.bse.co.bw/storage/disclosures/09/2025/6062.pdf

• This is the official company filing, containing:

  • Group revenue: BWP 9.173 billion

  • Gross profit: BWP 1.893 billion

  • Operating profit: BWP 318 million

  • Profit before tax: BWP 218 million

  • Profit after tax: BWP 151 million

  • Total profit (after discontinued operations): BWP 95 million

  • Notes on Zimbabwe disposal, cost pressures, and inflation impact

Supporting Media Coverage

1. BW TechZone – “Choppies lifts sales but profit dips on higher costs” (September 2025)

• https://www.bwtechzone.com/2025/09/choppies-lifts-sales-but-profit-dips-on.html

• Summarizes Choppies’ FY2025 results, highlighting:

  • Increased sales and gross margin improvement

  • Expense pressures and slower profit growth

  • Regional performance notes (Botswana, Namibia, Zimbabwe exit)

Secondary Reference

Botswana Stock Exchange (BSE) Official Announcements Portal

• https://www.bse.co.bw

• Used to cross-verify the release date, disclosure title, and reference number (09/2025/6062).