Botswana tycoon Ramachandran Ottapathu’s Choppies rakes in $346 million in just six months

Key Points

• Choppies’ H1 2025 revenue rose 19.4% to $346.2 million, fueled by store expansion, inflation-driven pricing, and higher sales volumes.
• Despite strong sales, margins dipped due to discounting in Botswana and Liquorama, partially offset by higher profitability in Namibia and Zambia.
• Choppies exited Zimbabwe, selling 30 stores to Sai Mart, shifting focus to stronger markets while boosting assets by 4.5% and cutting accumulated losses by 14.6%.

Choppies Enterprises, the Gaborone-based supermarket chain led by Botswana businessman Ramachandran Ottapathu, posted strong financial results for the six months ended Dec. 31, 2024 (H1 2025), with revenue climbing to $346.2 million. The growth was fueled by 26 new store openings, inflation-driven pricing, and higher sales volumes.

Revenue climbs, but margins under pressure

According to its financial report, Choppies’ revenue surged 19.4 percent from BWP3.95 billion ($289.88 million) to BWP4.72 billion ($346.16 million). The increase was driven by new store openings, inflation-driven price adjustments, and a 14.5 percent rise in sales volumes.

Net profit rose 9.5 percent to BWP115 million ($8.44 million), while headline earnings per share (HEPS) jumped 32.7 percent to BWP0.073 ($0.005). Gross profit also grew 18.7 percent to BWP965 million ($70.83 million), benefiting from strong sales performance.

However, profit margins came under pressure. Gross profit margin dipped slightly by 10 basis points to 20.6 percent due to competitive pricing strategies in Botswana and Liquorama segments. On the other hand, stronger profitability in Namibia, Zambia, and other regional markets helped offset some of the impact.

Net finance costs dropped to BWP52 million ($3.9 million) as debt reductions improved the balance sheet, though higher lease interest from new stores limited those gains.

Expansion and market shifts

Founded by Ottapathu and Farouk Ismail in 1986, Choppies remains Botswana’s largest retail chain, with a growing presence in South Africa, Zambia, and Kenya. However, it recently exited Zimbabwe, selling its 30-store Nanavac (Pty) Ltd subsidiary to local retailer Sai Mart, owned by businessman Raj Modi.

The decision to leave Zimbabwe follows ongoing economic challenges, including high inflation and rising informal retail competition, which made profitability difficult. Choppies has since refocused on markets with stronger consumer demand and better growth prospects.

Choppies grows assets, maintains dividend payout

Choppies’ total assets grew 4.5 percent to BWP2.94 billion ($215.86 million), while shareholders’ equity surged 63.1 percent to BWP199 million ($14.6 million). Meanwhile, accumulated losses shrank 14.6 percent to BWP491 million ($36.03 million), reflecting improved financial health.

Despite higher costs tied to store expansions and the Zimbabwe exit, the company remains optimistic about its future. The board declared an interim dividend of BWP29.9 million ($2.14 million), or BWP0.016 ($0.0015) per share, matching last year’s payout. The dividend is set for payment on May 8, 2025.

Choppies continues to strike a balance between expansion and financial discipline. While margin pressures persist in some markets, its strategic shift toward more profitable regions and tighter cost controls position the retailer for long-term stability and growth.