- Financial experts express optimis
- Retail giant expected to calm investor fears
After posting strong financial results amidst COVID-19, Fast Moving Consumer Goods (FMCG) giant, Choppies Enterprises Limited, is fighting back to regain its lost glory.
From oblivion, it seems Choppies is on the right track with an interesting set of financials that are welcome in enhancing the balance sheet. Results indicate a growth margin from 22.7 percent to 23.1 percent.
“The results will calm nerves amongst investors after what the retail giant went through in the past two years. It also gives hope to potential investors that are willing to take the risk. But the best thing would be to wait and see how things escalate because it’s still early,” says a local financial expert familiar with the Choppies strategy.
With the positive prospects, Choppies management is looking forward to repositioning the retail outlet, especially after the past two years which were marred by boardroom fights, suspension from the Botswana Stock Exchange (BSE), and a controversial Extraordinary General Meeting (EGM). The repositioning is expected to bring back the glory days when Choppies was viewed as an exemplar of retail.
A company such as Choppies that earns continual profits is seen as a potentially good investment option. The current Choppies financial results have been tipped to attract more investors who might see a good chance to earn an attractive return on the investment. This is because attracting investors depends on the ability to show the monetary benefits of investing in a business.
Says Choppies founding CEO, Ramachandran ‘Ram’ Ottapathu: “We are particularly pleased (with) the strong growth and our ability to consolidate our continuing business in Botswana, Zambia, Namibia and Zimbabwe. Recognised corporate governance policies and structures are now in place. This continues to be the main focus area for the board. I am confident that the actions we have taken will reposition Choppies as the preferred retailer for mass grocery and financial services in the countries in which we operate, thereby maximising shareholder value.”
Upon release of the financial results, Ram noted that the Choppies was in a position for a retail transformation. This is in line with observations that due to the COVID-19 pandemic, shopping behaviours have changed. This has led to retailers thinking of reshaping and transforming their businesses in order to stay afloat.
“New technologies and new ways to connect with consumers are transforming the retail sector,” Ram said. “To compete effectively, we should reimagine how we create and capture value. New retail models are arising out of new technologies and new ways to connect with consumers.”