On A Date with Simbisa Brands

Tue Apr 26 00:30:09 CAT 2022

On a Date with Simbisa Brands

 <mailto:bulls at bullszimbabwe.com> 

Dating is a critical stage to any investor considering to take a position on
any asset class even shares.

#1. History,

1987, A young entrepreneur Zinona Zed Koudounaris opens his first quick
service restaurant (QSR) Chicken Inn in Harare.

1989, Andrews Foods supplies a small confectionary upstart retail shop
Baker's Inn with bakery products.

1991, Baker's Inn starts its own bakery operations in Chitungwiza.

1994, Another bakery operation is commissioned in Bulawayo with expansion of
the bread plant in Harare.

1995, Nando's franchise for Zimbabwe is bought and a store is opened in
Avondale.

1998, Capri Corporation a struggling electronics appliance manufacturer is
acquired by Innscor Africa.

The acquisition enable the reverse listing of Innscor on the ZSE with the
delisting of Capri Corporation.

Innscor Africa is an investment holding company.

The listing allows Innscor Africa utilisation of the QSR Business to spread
its footprint into Africa as a diverse Pan-African operation. In the process
QSR outlets were opened in Zambia, Kenya and Ghana.

Innscor Africa is developing a portfolio of assets in fine, casual, Quick
Service Restaurants (QSR) and bakery.

1999, Steers franchise is acquired and a store is opened in Harare.

2011, Consolidation of the Harare bakery operations into one plant and
purchase of Galito's franchise, Nando’s (Zimbabwe only), Steers (Zimbabwe
only), Rocomama’s (Zimbabwe Only) and Vida E Caffé.

2013, franchised Chicken Inn, Pizza Inn, Creamy Inn and Galito's outlets
opened across Africa, including Zimbabwe, Zambia, Kenya, DRC, Ghana, Malawi,
Namibia, Mauritius and Swaziland.

2015, Innscor Africa spins off its quick service restaurants assets into a
separate business, Simbisa Brands.

2015, Simbisa was incorporated as a wholly owned subsidiary of Innscor.
Effective 1st October 2015 Simbisa acquired, through a scheme of
reconstruction, all the assets and liabilities of the QSR Business from
Innscor in exchange for 541,593,440 shares in the company.

Simbisa Brands is listed on the ZSE by way of dividend in specie.

#2. Operations, 

Simbisa Brands is an African focused business that operates owned and
franchised brands in

*	Casual dining
*	Fine dining
*	QSR

And 

*	Bakery operations.

+524 outlets are operated including 5 Drive Thru and +3 bread plants in
(Zimbabwe and Zambia) as at 30 June 2021.

#3. Brands

Owned Brands

° Chicken Inn

° Pizza Inn

° Creamy Inn

° Baker's Inn

° Fish Inn

° Grab n Go

° Kutuma (delivery service business in Kenya)

Franchised Brands

° Galito's

° Nando's

° Steers

° Ocean Basket

° Vida E Caffe

° Spur

° Rocomamas

° The Grill Shack

#4. Markets

Simbisa Brands operates in 9 countries,

Zimbabwe

Kenya

Zambia

Mauritius

Ghana

Nambia

DRC

Swaziland

Malawi

Namibia and DRC markets are operated through a franchising model

Zimbabwe is the largest market by income and coverage with Kenya behind

#5. Competitors,

Simbisa Brands is in a fiercely competitive market however it has managed to
build a competitive advantage through

*	Pricing
*	Locations
*	Multiple offering (holds master franchise for unique brands)
*	Delivery services
*	Promotional campaigns

Slice Distributors

*	The business that operates Chicken Slice, Pizza Slice and Cream
Slice.

Barcelos

*	A South African based franchise business started by Costa Mazzis who
mentored Benson Muneri the operator of Hotplate Grill.

KFC

Mambo's Chicken

Eat n Lick

#6. Management,

Basil Dionisio - Group CEO

An experienced executive who has been with the business from its inception.

Accredited with expanding the business into new regional markets and
offering.

A shareholder by his own right.

#7. Share Price

ZWL320 LTP per share as at April 25,

ZWL90.00 per share on the 4th of January,

ZWL178.8bn market cap (US$638.42m, 5.5% ZSE weight by market cap)

253% gained from the start of the year

14th most traded stock on the ZSE in the past 3 months to April 14.

562,184,788 shares issued.

#8. Shareholding,

18.29% of Simbisa Brands is controlled by an investment vehicle owned by the
founder of Innscor Africa, Zinona Koudounaris

#9. Pitch

The business is on an expansion drive across multiple markets with a huge
budget to open new stores. 

Market share in Zimbabwe and Kenya are higher than other rivals even
international ones such as KFC.

The Kutuma delivery services business.

Benefits from being part of the Innscor Africa ecosystem of businesses which
are complementary.

The trailer concept is another innovative model being used by Simbisa to
gauge market demand and offer services in any area.

Innbucks which was recently stopped by the RBZ is another innovative service
with multiple advantages which if regularised and fully exploited can
generate additional revenues.

Ability to earn its own foreign currency to facilitate imports needed in
operations.

A highly liquid stock 

 <mailto:bulls at bullszimbabwe.com> 

Each week will be on a DATE with a company listed on the ZSE with Martin
Mataga Twitter @MartinMataga. 

The purpose of this thread is to assist investors to have a minimum
appreciation of listed firms. 

Disclaimer: Do not misconstrue this thread as investment advice. DATE
companies before you buy their shares.

Invest Wisely!

Bulls n Bears 

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