Choppies Enterprises Limited has opted for a modest shareholder payout, declaring a dividend of 1.0 thebe per share for the six months ended December 31, 2025, underscoring the retailer’s cautious stance amid margin pressure.
The Botswana Stock Exchange and Johannesburg-listed grocer said the dividend will be paid on April 29, with eligibility already locked in after the stock went ex-dividend on April 15. The register closed on April 17.
For local investors, the payout narrows further after tax. A 10 percent withholding tax reduces the dividend to 0.9 thebe per share, trimming already thin returns. South African shareholders will receive the dividend in Rands at a conversion rate of P1 to R1.155, equivalent to 1.155 cents per share before tax. Withholding tax of up to 20 percent may apply, subject to double taxation agreements.
Choppies said the distribution will be paid out of income reserves and treated as a foreign dividend for South African investors. The payout comes against a mixed set of results. Retail sales rose 8.9 percent to P5.09 billion, supported by the addition of 25 stores and selective price increases. However, earnings moved in the opposite direction.
Profit after tax from continuing operations fell 33 percent to P77 million, while operating profit declined 20 percent to P152 million, as cost pressures intensified. The company cited inflation, currency devaluation and the implementation of a living wage in Botswana as key drivers of margin erosion. A weaker pula alone added P64 million in costs, much of which could not be passed on to consumers.
With household spending under strain and government austerity weighing on demand, the results reflect a retailer expanding footprint even as profitability tightens.