Choppies forecasts significant profit decline for FY2025

Choppies Enterprises Limited expects its profit after tax from total operations for FY2025 to decrease by 25% to 35% compared to the previous corresponding period, translating to an estimated BWP88 million to BWP102 million. Profit after tax from continuing operations is projected to fall by 18% to 28%, or BWP141 million to BWP161 million. These figures were impacted by the sale of the Zimbabwean business, foreign exchange differences, increased diesel costs, and other asset sale adjustments.

Earnings per share from total operations are expected to be between 4.9 and 5.7 thebe, representing a 25% to 35% decline. For continuing operations, earnings per share are forecast to be 7.9 to 8.9 thebe, down 15% to 25%. Headline earnings per share for total operations are projected to increase by 15% to 24%, to between 7.8 and 8.4 thebe.

The company attributed the higher effective tax rate of 31% (up from 15% in FY2024) to losses in Namibia for which no deferred tax has been raised and non-deductible losses from the Zimbabwe sale. Despite these challenges, Choppies remains confident in its core markets and continues to focus on consolidating profitability in Botswana, Namibia, and Zambia, completing turnarounds, maintaining financial discipline, and advancing ESG initiatives. The FY2025 results are expected to be released around September 22, 2025.