Simbisa Brands, owner and operator of fast food chains (Pizza Inn, Creamy Inn, Chicken Inn, Galito’s, Baker’s Inn etc), has reported a 13% growth in revenue in Kenya for the 3rd quarter ending 31st March 2025.
The 13% year-on-year (YoY) growth in Q3 FY 2025, was driven primarily by a 25% increase in average customer spending, even though the number of customers dropped by 10%. Over the year-to-date (YTD) period, revenue grew by 15%, supported by the same rise in average spend.
The challenging economic conditions, marked by high inflation, increased taxes, and constrained disposable incomes, significantly reduced consumer spending power. To address these issues, Simbisa introduced more cost-effective meal options.
During the 12 months ending 31 March 2025, the store network grew by a net addition of two outlets, resulting in a total of 251 locations. Five outlets were renovated during the same period.
Gross profit margins improved due to better procurement practices and stable local currencies. Operating expenses were effectively managed, ensuring high product and service standards despite lower customer traffic.
Revenue in US dollars remained steady in Q3 FY 2025 compared to the previous year but dropped 2% for the nine-month YTD period.
Customer numbers fell by 8% YoY over nine months and saw a more modest 3% decline in Q3. However, real average spend increased by 3% in Q3 and 7% over the nine-month period, as consumers adjusted their spending amid inflation and currency fluctuations.
Despite lower top-line performance, operational profitability improved due to better cost control, productivity enhancements, and strengthened staffing strategies.
Outlook
The Group remains committed to improving service quality and enhancing the customer experience. Renovating stores to modernize their appearance and functionality will remain a priority. Key growth strategies include menu innovation, value-focused advertising campaigns, and expanding delivery capabilities to meet rising demand.
Simbisa aims to open four new stores by the end of FY 2025 (30 June 2025). For FY 2026, the development pipeline includes plans for 53 new stores and 56 renovations, distributed as follows:
In response to inflation and rising costs, the Group is emphasizing cost efficiency and supply chain optimization. Steps are being taken to strengthen supplier partnerships to achieve long-term cost savings.
