Simbisa revenues grow 4% despite surging energy co...

Simbisa revenues grow 4% despite surging energy costs

Oscar J Jeke

Zim Now Reporter

Simbisa Brands, reported a 4% revenue increase in the third quarter of 2024, driven by a 12% rise in customer transactions compared to the same period last year.

The company served 12.1 million customers in the quarter, supported by the addition of 47 new counters, bringing the total to 330 operational outlets.

In their quarterly report, the company noted, “Simbisa Zimbabwe expanded its market share through new store openings, adding a net total of 47 new counters during Sept 2023-Sept 2024, bringing the total to 330 counters trading at the end of the quarter.”

However, the growth came despite a sharp rise in energy costs. Simbisa’s energy expenses more than doubled year-on-year, attributed to a 54% increase in ZESA tariffs and frequent power cuts, which forced greater reliance on diesel generators.

Meanwhile, these persistent power outages have significantly affected Zimbabwean businesses, increasing operational costs. TM Pick n Pay, for instance, consumed over 2 million litters of diesel in 2023, costing over US$3 million, generating an unsustainable nature of diesel dependency.

The challenges come at a time the Southern African region is grappling with the severity of an El Nino-induced drought that has furthered the need for investment in alternative energy solutions like solar to mitigate the financial and operational strain caused by unreliable electricity supply.