CHAMWE KAIRA
Namibia’s government-subsidised commodities contributed to weaker profitability at Choppies Enterprises during the year ended 30 June 2026, with the Botswana-based retailer saying its operations were affected by weaker macroeconomic conditions across its markets.
Choppies said government-subsidised commodities in Namibia were among the factors that impacted group profitability during 2026 Financial Year (FY2026), alongside reduced consumer liquidity in Botswana, the depreciation of the Botswana pula, food-price deflation in Zambia, higher oil and fuel prices, increased transportation costs and stronger promotional activity in constrained consumer markets.
The retailer is expecting profit after tax from continuing operations to fall by between 46% and 56% to between BWP66 million (close to N$80 million) and BWP82 million (N$98 million), compared with BWP151 million reported in FY2025.
For total operations, including discontinued operations, profit after tax is expected to decline by between 17% and 27% to between BWP69 million and BWP79 million, from BWP95 million previously.
Adjusted EBIT from continuing operations is expected to fall by between 33% and 43% to between BWP200 million and BWP235 million, compared with BWP351 million in FY2025.
Adjusted EBITDA from continuing operations is expected to decline by between 8% and 18% to between BWP520 million and BWP583 million, from BWP634 million.
Despite the decline in profitability, Choppies said revenue momentum remained strong and described the deterioration in demand as cyclical.
The group said food retail fundamentals remained intact and that it expected its core markets to remain resilient despite currency volatility, inflation and global uncertainty.
Choppies operates across Botswana, Namibia and Zambia, with activities spanning retail, wholesale and informal market segments.
The company identified the consolidation of profitability in Botswana, Namibia and Zambia as one of its strategic priorities.
Other priorities include completing the turnarounds of Builders Mart and Liquorama, improving distribution and inventory efficiency, maintaining cost discipline, rolling out a new enterprise resource planning system, upholding financial discipline and advancing environmental, social and governance initiatives.
The group said it remained confident of achieving sustainable growth and improved shareholder returns.
The FY2026 results have not yet been reviewed or reported on by Choppies’ external auditors.
The company expects to release its condensed financial results on or about 19 September 2026.
Choppies supermarkets Namibia has experienced aggressive growth alongside financial volatility, as regularly reported by the Windhoek Observer.
The fast-moving consumer goods (FMCG) giant now operates over 25 stores across Namibia, reaching a milestone in late July 2026 with its newest launch in Gobabis.
