Weaker consumer demand dragged Liquorama sales down 11.7 percent even as Choppies expanded the liquor business with 10 new stores.
GAZETTE REPORTER
Consumers tightened spending amid a weaker economy, weighing on Choppies Botswana’s Liquorama segment even as the retailer expanded its liquor footprint with 10 new stores.
The performance is contained in Choppies’ Summarised Audited Group Financial Results for the year ended June 30, 2026.
Sales Slide
Liquorama sales fell 11.7 percent during the year, while like-for-like sales, which exclude the effect of newly opened stores, declined 12 percent.
Despite weaker sales, the segment improved its gross profit rate to 13.1 percent from 12.4 percent, which the company attributed to better control over promotional activity.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to P17 million from P14 million a year earlier.
Earnings before interest and tax (EBIT), however, deteriorated to a loss of P24 million from P18 million previously, mainly because of additional depreciation associated with the 10 new stores.
Botswana Pressure
Across Choppies Botswana, sales decreased 0.7 percent to P5.618 billion from P5.658 billion, while like-for-like sales declined 1.2 percent.
The company said the performance reflected the “weaker economy in Botswana”, although it described the business as resilient in an increasingly challenging economic environment.
Sales were affected by a 5.5 percent decline in volume and price inflation of 5.1 percent, partly offset by the opening of seven new stores.
“New stores and inflation drove costs,” the company said, adding that stores opened over the past 12 months would need time to reach their full potential.
EBITDA and adjusted EBITDA declined 15.6 percent and 16.1 percent, respectively, as gross profit increased more slowly than costs. The gross profit rate also declined by 0.3 percent.
Regional Split
Choppies Namibia recorded sales growth of 23.2 percent, or 14.9 percent on a like-for-like basis. Government subsidies on maize, pilchards, soya, rice and oil between July and November 2025, however, squeezed sales value and margins.
Namibia’s EBITDA fell 25 percent, while its EBIT loss widened to P20 million from P9 million.
In Zambia, sales grew 42.6 percent in Pula terms, equivalent to 15.1 percent growth in Kwacha terms. Five stores were opened during the year.
Adjusted EBITDA declined 11.9 percent and adjusted EBIT fell 78.9 percent in Pula terms. Choppies attributed an estimated ZMW29 million, or P18 million, loss to the appreciation of the Kwacha, which caused wholesale and retail deflation.
Group retail sales increased 7.9 percent to P9.822 billion, driven by 27 new stores and inflation. The group recorded no volume growth, while price growth was 9.9 percent and like-for-like sales declined 1.2 percent.