Botswana tycoon Ramachandran Ottapathu leads Choppies to $12.5-million profit

Feyisayo Ajayi -
Key Points
  • Choppies' profit for the year ending June 2024 surged to BWP164 million ($12.5 million), up from BWP150 million ($11.4 million) the previous year.
  • Revenue rose 31.68%, reaching BWP8.54 billion ($650 million) in 2024, driven by strong sales in Botswana, Zimbabwe, and Zambia.
  • Choppies' total assets grew by 29.86% to BWP2.83 billion ($215.5 million), reflecting resilient financial performance despite economic challenges.

Choppies Enterprises, a Gaborone-based supermarket chain led by Botswana businessman Ramachandran Ottapathu, delivered a resilient financial performance at the end of its 2024 fiscal year, with its profit for the year ending June 30, 2024, surging above $12 million.

According to its financial report, Choppies' profit for the period reached BWP164 million ($12.5 million), up from BWP150 million ($11.4 million) in the previous fiscal year.

This growth occurred despite elevated operating expenses and increased finance costs.

Revenue surged by 31.68 percent, climbing from BWP6.49 billion ($494.3 million) in 2023 to BWP8.54 billion ($650 million) in 2024.

Strong sales in key markets such as Botswana, Zimbabwe, and Zambia played a crucial role in this revenue boost.

Discontinued operations weigh on profits

However, the retailer's bottom line was partially offset by losses from discontinued operations, which totaled BWP28 million ($2.13 million).

Consequently, total profit for the year declined to BWP136 million ($10.35 million).

The company also faced inflationary pressures and foreign exchange volatility, particularly in its cross-border operations.

Despite these challenges, Choppies remains optimistic about the future, citing plans to consolidate its regional presence and enhance operational efficiencies in its core markets.

The resilience of its financial performance during these tough economic times reflects commitment to delivering value to our customers and shareholders.

Choppies reports strong asset growth

Choppies Enterprises, co-founded by Ramachandran Ottapathu and Farouk Ismail in 1986, continues to hold its position as Botswana’s largest retail chain.

It operates a centralized distribution network across South Africa, Zimbabwe, Zambia, and Kenya, supplying international food brands as well as its private-label products.

The company’s success in navigating market fluctuations has helped fortify its financial standing.

The retailer’s balance sheet reflected this growth, with total assets expanding by 29.86%, from BWP2.18 billion ($166 million) in 2023 to BWP2.83 billion ($215.5 million) in 2024.

Shareholders’ equity also saw significant improvement, rising from BWP42 million ($3.2 million) to BWP136 million ($10.35 million) year-on-year, while accumulated losses narrowed from BWP664 million ($50.5 million) to BWP512 million ($39 million).